Speaking at the Time for Value conference, equity fund managers from Société Générale, Schroders, Rathbones and Jo Hambro Capital Management Group all pointed out that the price of equities versus bonds is at its lowest level since 1952. The fund specialists agreed that over the longer term, value investing and equity income products are now well positioned to outperform, and that patience was the key to success.

James Montier, global strategist at Société Générale, speaking at the event, explained: “Now more than ever, value investing is compelling, but investors must pay attention to the psychology of bear markets and ensure they avoid the perils of market timing. Overall, patience is required for investment in value stocks to pay off.”

The first signs of optimism can, apparently, also be seen elsewhere. Georgina Taylor, equity strategist at Legal & General Investment Management, pointed out that recent market falls have improved valuation support for equities and that October saw the dividend yield of UK equities exceed the yield of UK 10-year bonds.

“For long-term investors able to withstand current extreme levels of volatility, valuations for developed equity markets are starting to offer some interesting opportunities,” said Taylor. However, Taylor added that risks do remain in the short-term.