QOTD: We like the new stuff

All of my personal money is invested in value/momentum/shareholder yield strategies. New iterations of these pop up all the time (I do a lot of this testing myself). The market has a cruel sense of humor, though. Beware: whatever idea you are hearing the most about may be overly ripe. I hate even writing this because it’s cliché and self-evident, but the key to winning with these factors (if they are going to keep working) is to stick with them for the long term. This is really hard. Backtests are like diet books: tons of great evidence, studies, and so on. They make it really easy to invest or to cut out gluten. But what about a year later, or two, or three? Some new book (with a new diet or backtest) will appear, and we like the new stuff. The worst thing you can do is style hop, but we always do it because stupid evolution made us impatient performance chasers.