In the market environment, given various factors (many related to the COVID era influences), inflationary factors have given Value Investing a need for greater attention in a well diversified portfolio. While allocation to styles is always as important as diversifiaction across asset (and sub asset) classes, in the current market environment Value makes even more sense to perhaps allocate more to this style.
We have a market with PE's roughly above 30, versus a 20 PE that exstied before in a healthy market (historically 13 to 15). Inflation further influences, as mentioned already, a value supportive equity market. Psrt and parcel to the value discussion, is the discussion about the greater alocation to smal and mid cap, that by their very nature suggests a vaule set of characteristics (with a growth tendency as their market caps grow).
As we review and reallocate back to tagter alocations in the 1st Q 2022, we will look towrds a review of our model portfolios to perhaps indicate an increase in allocations abross these three categories.
Charter Capital Advisors Research - January 2022