Author Topic: Will Factor Tilts Continue to Work Going Forward?  (Read 857 times)

innerscorecard

  • Pencil Stache
  • ****
  • Posts: 590
    • Inner Scorecard - Where financial independence, value investing and life meet
Will Factor Tilts Continue to Work Going Forward?
« on: February 05, 2015, 08:35:53 PM »
http://awealthofcommonsense.com/happens-umbrella-shop-gets-crowded/

Intuitively, factor investing shouldn't work as well now that literally every can buy value or momentum through ETFs. But Ben gives some good reasons that it should still work, even if less well than before.

hodedofome

  • Handlebar Stache
  • *****
  • Posts: 1218
  • Age: 39
  • Location: Texas
Re: Will Factor Tilts Continue to Work Going Forward?
« Reply #1 on: February 06, 2015, 08:11:24 AM »
Yeah when something becomes too popular you have to be skeptical. I've even thought about going with a strategy that buys the strategies that have sucked the most lately, and continually rotating into the ones that are out of favor. It's about the best way I can come up with to overcome the 'trader effect,' where people jump into value investing too much because it's been working well.