Musings
May’s risk-on environment baffled many (and again caused soul searching amongst dividend and value investors. How long can factors (which has proven to create alpha over long stretches of time) continue to lag the market?
As John Maynard Keynes aptly phrased it, “the market can stay irrational longer than you can stay solvent.” And I fear that it will remain that way for a while as long as the Fed keeps rates on the floor and pumps liquidity into the system.
Source: S&P Global
As the charts demonstrate, value and dividend strategies have faced