New York — The best way to crush the crowd in 2017? Buy the things everyone insisted would never keep going up. A portfolio stuffed with allegedly over-inflated assets would have returned more than 120% so far in 2017, trouncing the S&P 500 Index and underscoring the challenge for investors facing a plethora of pricey securities. The hypothetical “bubblicious” portfolio includes Chinese real estate and internet names, a pair of US tech behemoths, a crypto-currency fund, the exchange-traded funds (ETF) industry, bonds that mature decades from now, and a dash of short volatility bets just to make things more interesting. The out-performance is a testament to the momentum mania prevalent in today’s markets, a dynamic which has prompted the likes of Greenlight Capital’s David Einhorn, Goldman Sachs, and Sanford C Bernstein to mull whether value investing is in the midst of an existential crisis, given ultra-low interest rates and abundant liquidity. With the benefit of hindsight, it’s e...

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