If you’re wondering why your value investing strategy is under-performing you’ll be interested in this interview by Charlie Turner at Your Money Matters and The Wall Street Journal’s Steve Russolillo regarding the current under-performance of value investing.
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Russolillo says value funds globally are on track to post their worst performance this year … relative to growth funds since before the financial crisis.
At the 2021 SALT New York conference, which was held earlier this week, one of the panels on the main stage discussed the best macro shifts coming out of the pandemic and investing in value amid distress. The panel featured: Todd Lemkin, the chief investment officer of Canyon Partners; Peter Wallach, the managing director and Read More
He goes on to say that growth stocks … the ones that have the momentum behind … the ones that just keep going up and keep defying the odds … are the ones that are significantly outperforming.
This trend is not new for value investors however Russolillo also says, this is the one huge caveat when we talk about this debate because … we’ve seen this play out time and time again … you go back to the great depression … you go back to the tech bubble and the late nineties and early two thousands … you go back ten years ago to the global financial crisis … and before these periods happened … you saw growth outperform so much to the point that people would say … oh value investing is dead it can’t come back it’s impossible … and sure enough … after you had those big market downturns … value is what tends to outperform when you have huge pullbacks or huge bear markets … and even after those bear markets you tend to see value again continue to do well.
Here is the complete interview:
Article by Johnny Hopkins, The Acquirer's Multiple