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REDDIT

Why are we still focused on Value when it's been a losing trade for almost two decades

Value has struggled for quite some time now. I'm curious as to why people still cling to it? The AI trade, for example, has left value in the dust. And this is really just a continuation of a trend that has been going since the recovery of the 08' crisis where tech and growth have consistently outperformed value in every way (I think value had a better year in 2022, but that's about it). At what point do you reconsider your commitment to the value thesis?

I think it can be a viable strategy when certain conditions are met, but solely hanging your hat on it strikes me as just burying your head in the sand at this point.

I'm sorry if I offended anyone. I'm just genuinely curious about what drives people to value these days.

EDIT: I'll clarify what I mean by value, since I didn't realize it could mean a hundred different things to people: The historical definition of value is buying underpriced securities that have lagged the market, but have strong underlying businesses, with the expectation that they'll eventually outperform. By this definition, this has not worked out for two decades (but worked really well from the 1970s to the late 1990s).