Yesterday, we heard from ARK’s Cathie Wood about why she believes growth investing will continue to outperform value investing, as it has been.
But as we also know in the markets, nothing is permanent. And, as value investing titan Rob Arnott notes above, be believes time has shown to be on the side of value.
“If the relative cheapness of value goes back to historic norms,” he says “value beats growth by 7,000 basis points—70 percentage points. If it goes back to the midpoint of the cheapest decile in history….that’s a 3700 basis point gain over growth.”
In terms of future returns he notes, “I think this is a better time to be a value investor than any other time in my career.”
Watch as Arnott makes his case for why value will never “die” in the highlight above, and watch his full conversation with Wood here.
It’s “Disruptors 2020 Innovation Week” on Spark! Stay tuned this Holiday Week as we look to the future and highlight panels on space, tech, disruption and everything new featured at our recent Spark Disruptors conference. Blast out of 2020 and into a new and, hopefully, brighter year. See more clips on Sparknetwork.com.
