Why has value investing underperformed growth investing for over twelve years and how to position your portfolio for the eventual rebound in value investing.
In this episode you will learn:
The difference between growth and value investing and why value investing outperforms growth investing over the long-term.How value and growth indices are constructed and how they differ from fundamental indexing.What are the risks and opportunities of investing in concentrated, deep-value managers.Why value investing will eventually rebound.
Thanks to WIX and Sleep Number for sponsoring the episode.
For show notes and more information on this episode click here.
[0:18] What is value investing?[2:07] A historical look at growth vs. value yields. [5:41] The return of the value stock in the early 2000s. [11:07] The twelve and a half years of underperforming value stocks. [13:09] The sectors controlling the performance of value and growth stocks. [15:01] Better understanding the indices. [20:31] Using fundamentally weighted indices to balance your portfolio. [23:10] Are underperforming managers struggling because of poor skills or because of unfavored strategies?[29:20] While value may be difficult to predict, it isn’t dead. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.