Value's lost decade,
and the bill to climb back.
The same premium the brochures quote spent thirteen years in the red, then paid most of it back in two. Sit it out at the bottom and you keep the loss, miss the rebound.
| The value factor |
Reading |
| Long run premium, per year | 3.5 pct |
| The winter, 2007 to 2020 | 13 yrs |
| Peak to trough drawdown | 55 pct |
| Gain just to break even | 122 pct |
Longest, deepest drought the factor has shown since 1963. Then it snapped back hard across 2021 and 2022. The investor who quit at the bottom locked in the minus 55 and handed the rebound to whoever was still holding.