Historically, value stocks have outperformed growth stocks in the United States, though recently that hasn’t been the case. While disappointing periods emerge from time to time, the principle that lower relative prices lead to higher expected returns remains the same.
Logic and history argue for a commitment to value stocks, so investors can be positioned to take part when those shares outperform in the future.
This post was prepared and first distributed by Dimensional Fund Advisors.
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Let’s take a look at five of the most common financial adages and review why they are often much easier said than done.