Align Wealth Management Blog The Viability of the Value Premium, Part 2: The Long Perspective

In part 1 of this series, we examined the value premium’s origins and proposed that evidence-based investors are well-advised to keep the faith on value investing, giving due consideration to how it meshes with their personal financial goals and risk tolerances. Still, a decade is a long time to tolerate disappointing numbers while awaiting an expected reward. For many of us, our children are about the only other misbehaving “investment” we would put up with for that long. However, we prefer to consider value stock performance over a decade or more, since the expected outperformance can go into hiding for years, and often has.