
Last week Dimensional released a report that showed an unprecedented negative outcome for value investing over the last few years. What is going on and how can we benefit from this information? So from July, 2010 to 2017 Value outperformed its historic performance by about one and a half percent, which is nice until we discover the Growth outperformed Value in the same period by 7.6%. That's a lot annualized over such a long period. In the last three years, Growth continued yet Value had an average annualized return of -3.3%. This has resulted in annualized spread of over -21%. That's pretty much unprecedented. We know the Value and Growth sort of do the seesaw thing, but right now we see this Growth's up here, Value's down there. Now for those of us who are diversified, who are disciplined, who've had a Value bias since basically the beginning of this...
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