After years of struggle, it seemed like the big rebound value investors had been waiting for was upon us in the wake of the 2020 bear market. But recent months have seen a return to the dominance of growth, which has many investors believing value’s rebound was nothing more than a head fake. This week, we are joined by GMO Head of Asset Allocation Ben Inker to discuss the recent quarterly letter he wrote to counter these arguments. We discuss the common arguments investors are making against value and why they may not hold up when subjected to scrutiny. We also get Ben’s thoughts on a variety of other issues including factor timing, the future of the 60-40 portfolio and how the current period value compares to the period in the early 2000s.
We hope you enjoy the discussion.