Morgan Stanley: It’s A Bad Time To Be A Contrarian

It’s a well-known fact that value investing tends to underperform in bull markets. As Seth Klarman wrote at the height of the dot-com bubble: “ … I must remind you that value investing is not designed to outperform in a bull market. In a bull market, anyone…can do well, often better than value investors. It is only in a bear market that the value investing discipline becomes especially important…it helps you find your bearings when reassuring landmarks are no longer visible …” — Source  [klarman] Unfortunately, year to date, value strategies in European equity markets have underperformed strongly, and over…