Before I dive into today’s post, I have to make clear that I am not an anti-value investor. I started my career as a value investor, and I still think that the value factor is real and has historically been large. In fact, I think value and momentum are the two most reliable factors investors should try to exploit to gain superior returns. However, the world is changing and over the years, I have come to believe that the value factor has declined in size over time and probably is much smaller today than it was 30 or 50 years ago, something that I have looked at
Any article with a 100+ word disclaimer at the start is bound to be worth reading!
yes. or this could all be somewhat normal if you increase the sample size. the value underperformance is severe, but not unprecedented.
https://www.twocenturies.com/blog/2020/5/26/value-and-momentum