Since 1997 the performance of “value” has been cyclical. But over the very long term value as an investment style has still outperformed the “growth style” of investing. This means that when value outperforms, it does substantially better than growth.
There has been a particular long run of value underperformance. Since 1997 there have been five periods where value has underperformed, says Ricco Friedrich, Portfolio manager at Denker Capital, “but the current period is the longest one of underperformance – four years! The longer this phase of the cycle continues, the more severe it becomes.