‘It’s All One Trade’: One Bank Declares Value Investing ‘Dead’

‘It’s All One Trade’: One Bank Declares Value Investing ‘Dead’

By now, you know the story -- or at least you should. If value, as an investment style, was already dead, the pandemic buried it. ("Does anybody want to say a few words?") That's rather macabre, but it's true. Just ask some value investors. Or consult any of the myriad visuals one can produce to illustrate the point (figure below). This is the discussion outlined comprehensively in "The Only Debate That Matters". Every rotation out of secular growth winners and into cyclical value laggards
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5 thoughts on “‘It’s All One Trade’: One Bank Declares Value Investing ‘Dead’

  1. Value is dead. I guess it will be this way for the next 1,000 years.

    Value stocks didn’t lose 30% the last three trading days. I have no problem stuffing some NAV into “value stocks” like good utilities companies that cough up 4%+ per year.

    The market narratives as always seem to take as much money from people as possible. Look at Dave Portnoy. The poor guy lost $4M the last few days.

    1. With solar energy trending towards less than 1 cent per kwh. I would not consider Utilities value but dinosaurs ripe for slaughter by the lilliputians. However if long term cash flows have infinite value then value stocks should excel. No I think a different explanation is obvious. This is a momentum trade pure and simple. The kindling is having enough cash to buy stock to set off the momentum trend.

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