Fortune

REVENGE OF THE CHEAPSKATES

For most of the now nine-year-old bull market, so-called value investors have been getting crushed by growth investors. Here’s why the tide could finally turn in favor of the bargain hunters.

IT’S HARD TO REMEMBER a time when Amazon’s burgeoning market share wasn’t the dominant story in retail. Other companies define themselves in relationship to the online behemoth, whether they’re trying to fend it off (see: Walmart’s efforts in e-commerce), joining forces with it (see: Kohl’s offering floor space and handling returns for Amazon), or crumbling under its assault (see: Toys “R” Us). And never mind the fact that Amazon’s actual profits are slim: It’s the stock investors favor. Over the past five years, its share price has more than quintupled, while the S&P 500 retail index has risen a pedestrian 32%.

There’s no telling when Amazon’s growth might start to level off. But the off-the-charts outperformance by its stock—and others like it—may be coming to an end.

Economic conditions over the past decade have encouraged investors to seek out

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