“Of all 1,059 5-year rolling cycles observed since 1932, there are only 3 periods with smaller value premiums. The current -6% belongs to the 1% of the weakest periods”
Typically this type of underperformance has led to 14-19% outperformance in the subsequent 5 years.
Interesting long term chart of value and growth outperformance.
“The development of share prices has long vindicated this theory: from 1926 to 2007, Value stocks recorded around 5% higher annual returns than Growth stocks. Over the last five years, Value stocks have underperformed Growth stocks by an average of nearly 6% per year.”
