No. of Recommendations: 3
That encouraging for the next bear market in that it increases the chance of someplace to hide.
Value stocks very much underperformed in the late 1990s, a value valley of death.
That mean that in the following three-year bear there were stocks and screens that did well.
This is in contrast to 2008 were everything went down together.


I had that thought, too.
But it might not be very comforting.

Last time around, 2000-2002, one of the reasons it worked was that the value stocks ended the tech bubble being extremely cheap.
Quant screens on value worked, but then almost anything on value worked.

That is not so much the case right now.
Most things, even very ordinary firms, are at quite rich valuations compared to history.

So the quant stuff might find an advantage yet again in the cheaper stuff, but it might not be that great.
Maybe they'll outperform a falling market but not by enough to create positive performance.

Who knows?

Jim
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