FYI: In one of the sharpest swings in years, cheap “value” stocks outperformed fast-moving “momentum” shares by up to 8 percentage points in a single day this week. That move could, just possibly, foretell the long-awaited resurrection of value stocks—but it definitely highlights the risks of betting big on any particular investing style.
Investors and financial advisers have been flocking to bundles of stocks, bonds and other assets that share certain characteristics of risk and return. Such portfolios, often called “factor” or “smart-beta” funds, have boomed to $1.07 trillion in assets as of this Aug. 31 from $690 billion at the end of 2016, says Ben Johnson, a research director at investment-research firm Morningstar.
Regards,
Ted
https://www.wsj.com/articles/how-to-factor-fickle-markets-into-your-portfolio-11568386324?mod=searchresults&page=1&pos=1
