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Why Value Stocks Outperform High Quality Stocks?
Value stocks tend to be beaten up. They tend to have gone through a period of greater risk than the market as a whole. A lot of these factors form pairs, they form opposing pairs. Can we really have a situation where investors are incorrectly undervaluing both beaten up stocks and stocks that are highly popular? And the answer doesn't have to be that youre you disbelieve in one or the other, but you do need to be sceptical. It's basically you're applying the scientific method to financial markets.