So, So Frustrating

So, So Frustrating

I want to be a value investor, I really do.  But it can be so, so frustrating.  It must be nicer to be a momentum investor or some sort of behavioral investing, where you understand the pschye of the masses.

But magic formula investing is as value-based as it gets.  I have documented many times recently how MFI has been lagging the overall indices by a broad margin.

To be clear, it isn't just MFI - it is Value in total.  And there are many times, such as this week, where I just feel like capitulating.  Just buy some TSLA, BTC or Pot stocks.... or NFLX. AMZN, FB.... whatever.  Non-value, ie growth, stocks.  Some of these probably are good values.  I am losing faith in my ability to judge.

But this graph says it all:

This shows for the past year, IWD (Russell Value) versus IWF (Russell Growth).  It seems to have gotten truncated, but the growth component is up 32.9% in past year.  Value is up 14.4%.  Almost a 20 point butt kicking.  And you wonder why MFI is struggling?  Look no further than this graph my friends.

Will It Reverse?
If So When?
Will I still be sane?

Enquiring minds want to know!

And of course, adding to my frustration, the few growth stocks I pick - rarely seem to pan out.  What is the opposite of The Midas Touch?

Argh!