Intelligence

Value Investing Isn’t Dead But You’ll Need to Adapt

Goldman Sachs recently issued a report debating whether value investing is truly dead. Ultimately, the report determined that it was not but value investors have been feeling frustration in the markets, especially since the election. This story would cover what value investors can do to adapt their strategy versus abandoning it altogether and point out where the opportunities are, e.g. emerging markets. 1. How are value investors affected by rising interest rates? 2. How problematic are overvalued companies for investors who prefer a value approach in the current market environment? 3. Are emerging markets an attractive alternative for value investors who may be feeling frustrated by their current investment performance? 4. How does the surge in passive investing and its related tools (i.e. ETFs, robo-advisors) impact value investors? In other words, does the push towards passive investing make it more difficult for value investors to gain traction in the market? 5. What should value investors be keeping in mind as they look towards the long-term when building their portfolios?