There has been much commentary recently claiming the end to traditional value investing. These views are held by highly successful firms and individuals, for whom I have great respect.
It is, however, a very one-sided view that is being put forward.
It is relatively easy to support this argument after 11 years of growth investing quite clearly outperforming value. But there is very rarely only one side to a debate and, as Nassim Taleb says in The Black Swan: The Impact of the Highly Improbable: "Once your mind is inhabited with a certain view of the world, you will tend to only consider instances proving you to be right."
Value has certainly had a dark time of it over the last 11 years, with 2016 being the only year that it has outperformed growth, but there is no doubt that its darkest hour in a generation has been this last eight-week period during the Covid-19 pandemic.
During this period, we have witnessed for the first time ever, an almost complete closing down of the global economy.
This has been combined with quite extraordinary attempts by governments worldwide to shore up their domestic economies as entire populations, barring key workers, are forced to work from home and important industries are shut overnight.
Undoubtedly, it has provided a wonderful boost to those giants of technology, Microsoft, Amazon, Apple, Google and Netflix - companies providing great products and services but which are being priced for endless growth.
The market cap of Microsoft is now virtually the same as the whole FTSE 100: at Oldfield Partners, we ask if it's right that this is the case?
And here lies the other side of the debate: I do wonder how differently this would have worked out if the virus had been a technological one and not human - something not beyond the realms of possibility. Would growth investors been quite so boastful?
We are currently in an extraordinary zombie economy where the aforementioned tech companies can shine. But we will come out of this. People will return to pubs and travel again.
They will also drive cars and buy homes, driving up the use of oil and financial services in the process.
In short, there is a time coming when the pent-up demand will be released and stocks that have been priced as if they were being driven to extinction will perform.