Value investing has thrived internationally while struggling in the US, according to investor Daniel Rasmussen. US stocks have outperformed international stocks for years, with the “Magnificent Seven” dominating the US growth index. However, value stocks in emerging markets have seen significant success, particularly in financial services and energy sectors.

Europe has seen value outperform growth over the past five years, but Europe now represents less than half of equity market capitalization outside the US. Emerging markets like China, India, and Brazil have also seen value stocks outperform growth, with the decline of Chinese internet companies contributing to this trend.

The US has seen value investing underperform growth, with macroeconomic factors like rising interest rates impacting performance. However, growth stocks have bounced back despite high rates, driven by enthusiasm for AI technology. The cyclical nature of style leadership suggests that value investing may see a resurgence in the future.

Value stocks have been labeled as “structurally challenged” and in “secular decline,” but value investing is about stocks that underpromise and overdeliver. The future of value investing remains uncertain, with AI technology potentially shaping a new market regime. Time will tell if recent rotations in the market are lasting trends or temporary fluctuations.

Read more at Yahoo Finance: Why value investing has worked better outside the US