Value investing: Judging 'value', through another lens, and in real terms

REITs, financials, materials, and energy have remained at the lower end even when real returns are sorted by 10- and 15-year timeframes

Topics
Value funds | Investments

Shankar Sharma Devina Mehra & Harsh Shivlani 

The style of investing that has attracted maximum derision in the last decade is value investing. The aftermath of the 2008 crisis, in which central banks flooded economies and the markets with liquidity, effectively crushed the risk-free rate down to levels unseen before.

The effect it had on growth equities was astonishing: the FAANG trade was born roughly one year after the GFC (global financial crisis) and did not look back until the end of 2020. What essentially happened after the 2008 crisis was that even moderate expected growth became magnified in present value terms, simply because ...

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First Published: Sun, May 23 2021. 21:44 IST
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