Will value investing make a comeback?

DIFFERENT competing forces are constantly at play. Depending on which force has the upper hand, the world will move in that direction.

In investing, the often-discussed opposing styles are value versus growth. Throughout much of stock market history, taking the value approach in investing has been more rewarding than going for growth.

According to Professor Kenneth French's Data Library, a $100 invested into US small cap value stocks back in 1971 would have grown to $42,668 by end of last year, i.e. at a compounded rate of 13.7 per cent a year. Taking the growth approach would only grow your $100 to $7,281, or at an annual compounded rate of 9.6 per cent a year.