Those who thought value is dead probably had a rotten January, at least if they acted on such assumptions. Financial theory (including the value factor) still matters. The often-empirically-demonstrated long-term efficacy of the value factor tell us that for the most part, investors are not especially good at analyzing companies. A bet on the long-term death of the value factor is tantamount to a bet that we’ll be able to predict trends using graph paper and a straight-edge ruler. The Bottom LineI can’t promise the end of turbulence for the Value factor.

Source: Forbes February 05, 2019 17:37 UTC