menu close
DiMeo Schneider & Associates

Investment Manager Research

Is Value Dead?

December 19, 2019


  • Over the past decade, value stocks have underperformed growth stocks substantially. Historically, the value premium has experienced prolonged periods of underperformance. We do not believe that value investing is broken.
  • Value stocks look historically cheap relative to both growth stocks and their own historical valuations.
  • Given the historical return pattern of the value premium, we recommend a balanced portfolio with exposure to both value and growth stocks.

Value investors have had a rough decade. The investment style has experienced one of the most prolonged periods of underperformance in recent memory. Value has consistently and significantly underperformed growth, leading investors to question whether value investing itself is dead. We do not believe that is the case and expect value investing to recover eventually. In fact, we caution investors against abandoning value in their portfolios.

For our discussion, we define the value premium as the excess return of the Russell 3000 Value Index over the Russell 3000 Growth Index.

Click here to read more of the white paper Is Value Dead?

2019 Fourth Quarter Considerations Video

Investors had a lot to digest in the fourth quarter. Watch Steve Proffer, CFA, Consultant and Market Strategist, recap economic …

    Investment Manager Research | Quarterly Considerations
2019 Fourth Quarter Considerations

Quarterly Considerations Retirement Plans The most significant retirement plan legislation in over a dozen years was just signed into law! …

    Investment Manager Research | Quarterly Considerations
2019 Fourth Quarter Knowledge College

Fourth Quarter 2019 Knowledge College 2020 Outlook Key Observations •Heading into 2020, several asset classes hit new all-time highs with …

    Investment Manager Research | Knowledge College