FYI:
While value generally underperformed the broad U.S. equity market over the past decade, it did so at levels that were less than half those of the late 1990s, a period followed by 10 years of outperformance.
In the U.S., underperformance in value was driven by the earnings yield factor and the technology sector. Value drove positive returns in several other regions and certain U.S. sectors.
Within technology, the high-performing – but expensive and thus underweight – software and services industry has led the decline in value strategies.
In 1934, Benjamin Graham and David Dodd identified value as an equity investment style.1 Their then-revolutionary idea was that investors could buy stocks that were undervalued, based on their intrinsic value, and then wait for the market to recognize its “correct” price. A glance at value’s recent history, however, raises the question: Are value’s glory days over?
Regards,
Ted
https://www.msci.com/www/blog-posts/value-investing-is-down-but-is/01619618276
