The theoretical support for value investing is

longstanding—paying a lower price means a higher

expected return. However, realized returns are volatile.

A 10-year negative premium, while not expected, is

not unusual.

But history also tells us that changing course after

a disappointing spell for known premiums can lead

to missed opportunities. When those drivers of

outperformance have turned around in the past,

steadfast investors have been rewarded. A key to

successful long-term investing is sticking with your

approach, even through difficult periods, so that

you are there for the good times too.