U.S. value equities have now underperformed U.S. growth equities over the past 10 years. Only two other times in the last nearly 90 years have we seen the value premium produce negative returns on a 10-year basis. It seems reasonable to ask whether we are witnessing the death of the value premium. This question might be approached through three lenses:
- How dependable has value been through time, and how does this compare to other risk premia?
- Have unique macro forces contributed to recent value underperformance?
- What are the philosophical underpinnings of value and has anything changed?