Traders work on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters
Value stocks, those with stable fundamentals and subpar valuations, haven’t been this cheap since the financial crisis, according to Bank of America.
Cheap equities enjoyed a resurgence in September from a decade of underperformance as investors bet on economically sensitive, underpriced stocks on hopes for a U.S.-China trade deal. Value names have become particularly cheap relative to momentum stocks, creating a buying opportunity, the bank said.
“Value has never been this cheap vs. Momentum,” Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch, said in a note…