Finance Blogger Wisdom: What Did the Last Ten Year Teach Us?

Continuing his annual Finance Blogger Wisdom series, Tadas Viskanta of Absolute Returns asks: Ten years have passed since the onset of the financial crisis. What about the past decade has changed your thinking about the economy, financial markets or investing?

This was my answer:

Value investing works, but applying a value strategy without some kind of momentum filter is a recipe for frustration because cheap stocks can stay cheap for a long time in the absence of a catalyst. You don’t necessarily need to know the catalyst ahead of time. Simply waiting for a cheap stock to resume some kind of modest uptrend will save you a lot of grief. This has been a decade in which growth has absolutely thrashed value.

There were some really good answers by Tadas’ collection of bloggers. To read their answers as well, see Finance blogger wisdom: ten years in