Value portfolios formed on price-to-earnings are underperforming glamour for the longest time *EVER* going back to 1951 — 9 years | Value Investing News

Value portfolios formed on price-to-earnings are underperforming glamour for the longest time *EVER* going back to 1951 — 9 years

  • For example, the second-worst period in the data was in the early 2000s run-up to the Dot Com peak, when value trailed glamour by 44 percent between May 1998 and February 2000.
  • If we count from the 2006 high, we’re now more than 13 years and 3 months into value’s underperformance.
  • Glamour portfolios have returned 9.5 percent compounded, which means the value decile has typically outperformed the glamour decile by an average of 9 percent per year.
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