Bubbles in risk assets, including Bitcoin and a lot of other speculative nonsense, are finally bursting, showing why intrinsic value matters after all—and why the laws of economics, though recently suspended, have not been repealed. After a long period of time where a value strategy looked tortoise-like (losing ground to the broad market, tech stocks, and every other hare-like momentum strategy), things appear to be changing. Last year, value plodded along behind the broad market indices and international stocks (the greatest store of ignored value) did poorly. A few of the bubbles bursting:Crypto: Crypto assets are suffering crashes the likes of which would be considered cataclysmic in general markets. But as I wrote recently, you can’t value crypto so there’s no logical basis to own it.

Source: Forbes January 07, 2022 15:29 UTC