Requiem for Value Investing

Value investors are asking themselves, will the promise of value investing return to prominence? The answer is multi-faceted. Indeed, value investors experienced underperformance versus the broader market and growth stocks for the last thirteen years. A secular change transpired that gave life to the dominance of growth stocks, which may persist. Capital consumption and intensity are declining. Intellectual property investment is approaching equipment investment in amount. The result is unprecedented corporate profits. In a service dominated world where global trade, value resides in the income statement and not on the balance sheet. Caveat emptor for traditional value investors.