In volatile times, value’s defensive qualities can shine

Value as a factor has been enjoying a revival, and support is growing after many years in the investment wilderness. With inflation likely to remain elevated and central banks undertaking aggressive monetary tightening, the backdrop for value has improved. Importantly, within value, investors can take advantage of diversification and defensive attributes. Higher exposure to financials, utilities, and cyclicals offers potential to mitigate the worst effects of inflation, while also offering greater levels of defense in times of rising rates and more volatile markets. Meanwhile, longer‑term trends...