Value investing: Judging 'value', through another lens, and in real terms

REITs, financials, materials, and energy have remained at the lower end even when real returns are sorted by 10- and 15-year timeframes

The style of investing that has attracted maximum derision in the last decade, it is value investing.

The aftermath of the 2008 crisis in which Central Banks flooded economies and markets with liquidity, effectively crushed the risk-free rate down to levels unseen before.

The effect it had on growth equities was astonishing: the FAANG trade was born roughly one year after the GFC, and did not look back till the end of 2020.

Most investors did not quite understand then, the implications of the effect that a lowering of discount rates has on equities: even a modest lowering of 20%