Value, however, like all other investment philosophies, can have difficult periods. Normally these periods of underperformance of Value are short lived (two to three years). However the current period of difficult performance for Value has lasted five years, starting from the end of 2006.
This period of underperformance started with the credit crunch and culminated in the huge anti-Value move that was co-incident with the European Sovereign Wealth Crisis.
It is this unusually extended underperformance of Value that has reduced the level of interest in and participation in the Value approach. Indeed, in many cases Mr. Market appears to have stopped using Value completely.