Value stocks have underperformed growth stocks by 3.4% a year for over a decade . While it may be a valid question to ask if tilting a portfolio to value still makes sense, it may be helpful to understand first how recent performance stacks up historically. So how do the returns for value and growth stocks over the past decade compare with their long-term averages?
A Tale of Two Decades from DFA
I often am asked what I think is going to happen in the stock market. For anyone that has read this blog or spoken to me for any period of time on the topic of investing, you probably know that there is scant evidence that “smart” investors can consistently outsmart the market. Yet, I still get asked what I think is going to happen.