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Is There a Mean Reversion in Value and Growth?
The behavioral explanation in general terms is that investors overreact to the growth potential of growth stocks. And so you would expect if that's true, there would be some mean reversion. So they form portfolios based on past stock returns and use that as a proxy for the hype factor. In 1996, Fama and French found any differences in future returns could be explained by sales or earnings growth.