Several signs point to an end of the long-term slump suffered by value stocks, according to a recent article in Kiplinger.

Here are some key takeaways from the article:

• The current growth cycle might be coming to an end: “Although tech stocks may continue to rise, it is uncertain if they can retain their current rate of growth,” the article says, adding, “The largest cause of their meteoric rise, by far, is the monopolization of services.” Further, the possibility of higher interest rates and inflation adds an element of uncertainty to the future of tech stocks.
• “The single most important event that will accelerate the return of value stocks” the article states, is the post-pandemic re-opening of the economy. It will lead to much larger cash flow for businesses which will fuel their growth. “This, in turn, will lead to a renewal in investor confidence” the article says, “culminating in a domino effect of rising stock prices.”
• These indicators, however, do not mean that “value investing will suddenly become a foolproof silver bullet,” the article stipulates, noting that even though “the tech industry is a prime candidate for value investing” investors should avoid value traps—”innovative companies that attract a lot of venture capital without actually bringing a product to market.”

The article concludes with advice for investors: “Look for companies that have intrinsic value, and that you truly believe in. While that may seem like generic advice, something tells me that this year, it could become a lot more profitable than it has shown to be in years past.”