Please refresh the page and retry. T he stable companies that investors have ploughed money into in recent years will suffer share price falls while investors in cheap, neglected businesses will prosper as inflation and higher interest rates return. A t the moment, companies in the energy, infrastructure, construction, mining and industrial sectors are considered value investments. However, financial groups, particularly banks, are perhaps the best current example of a value investment. The expectation is that he will spend heavily on infrastructure and cut down on immigration, pushing wages up.

Higher inflation is the likely consequence, leading to higher interest rates. It is not just an American story: But now there are signs of a major upheaval in the market. I ndeed, for the past few months value companies have outperformed quality growth companies.

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And there is a long-term trend of outperformance. In America, value companies have outperformed growth companies in seven out of 10 years since Darius McDermott of Chelsea Financial Services, the fund shop, said that during times of political uncertainty it was understandable that investors sought safety in steady, defensive companies.

Shifts in central bank policy also imply that value shares are about to shine, according to Joshua Ausden of Neptune Investment Management. There has been a definite change in attitude from policymakers in recent months. Two funds singled out by FE to benefit from the trend are Invesco Perpetual UK Focus and JO Hambro Capital Management UK Dynamic, although the firm cautioned that investors would need to invest for at least three years to see the theme deliver decent returns.

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This is a constant feature of the stock market over many decades. Among the stocks that value fund managers expect to outperform are financial companies such as HSBC, Lloyds and Aviva, oil giants BP and Shell, drugs maker GlaxoSmithKline and telecoms firm Vodafone.

The flip side of this is the defensive companies that investors have piled into for the past few years seem poised to fall. Charles Younes of FE said: Ben Leyland of the JOHCM Global Opportunities fund said these stocks now reflected dangers in the actual bond market. We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future.

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Buy these bargain stocks before they make a comeback RUM. But what is a value stock? Should investors be changing their portfolios to take advantage of this nascent shift? Lloyds is the ultimate value stock. Follow The Telegraph Follow on Facebook Follow on Twitter Follow on Instagram.

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