Not necessarily contradictory but, for index value investors, a tension exists between the discipline of continuous capital deployment and the prudence of valuation sensitivity during a bull cycle (i.e., feels discomfortable to continue investing at ~25x P/E in S&P but hard to time the market).
Yes, I agree. Most quality companies trade well above 20x today unless there are questions about slowing growth or moat erosion. Tough times for quality + value while momentum is leading the market.
these reasons, and age, is why i slowly shift to systematic portfolio managers using economic factors with explanatory power. i dont begrudge them low-weighting correlative factors (size, momentum, etc..) for trade-desk execution.
Not necessarily contradictory but, for index value investors, a tension exists between the discipline of continuous capital deployment and the prudence of valuation sensitivity during a bull cycle (i.e., feels discomfortable to continue investing at ~25x P/E in S&P but hard to time the market).
Yes, I agree. Most quality companies trade well above 20x today unless there are questions about slowing growth or moat erosion. Tough times for quality + value while momentum is leading the market.
these reasons, and age, is why i slowly shift to systematic portfolio managers using economic factors with explanatory power. i dont begrudge them low-weighting correlative factors (size, momentum, etc..) for trade-desk execution.