Sure about your investment strategy? Here’s the case for value investing
In late 2015, no one wanted to be in emerging-market value stocks but since then they have been the best place to invest
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” – Mark Twain This quote is particularly relevant in stock markets. For years, investors were handsomely rewarded when they allocated money to growth, momentum or quality strategies; preferred developed markets over emerging markets; and chose large caps over small caps. This outperformance lasted longer than usual and caused value managers many sleepless nights. The longer it lasted, the more certain they were that the trend would persist. It’s amusing that whenever market pundits are absolutely sure of a theme, it’s usually time to do the exact opposite. This anomaly has once again played out. In late 2015, the last place anyone wanted to be was emerging-market value stocks – and since then they have been the best place to invest.
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