If I told you that there is an easy-to-exploit market anomaly that has enabled investors to consistently and substantially outperform the market with less risk for more than four decades, your first instinct might be to roll your eyes. After all, the unending quest to improve returns while lowering risk has yielded countless methods with initial promise that
subsequently collapse under further scrutiny.
Not so fast. What if I could show that this market anomaly is well-documented in the academic literature – that it is not just some esoteric theory? And that now some newly created ETFs provide a convenient way for advisors to access this strategy?
You might listen a little closer.
Read the rest here.
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Looks like the author of that piece recently bought a copy of “Value Investing” by James Montier. Exactly the same thing that Montier advocates.