Value investing strategy the Russell 1000 Value index has seen a

The Russell 1000 Value index has seen a liquidity surge, with average daily trading volume up 18% since April, indicating renewed investor confidence in fundamentals-heavy portfolios over speculative momentum plays. So, here, you're combining Warren Buffett's valuable investment advice with a strategy that relies on compounding, and the results look pretty impressive. Of course, the index's gains over the next 35 years may vary -- they could shift higher or lower -- so the resulting value of your investment is impossible to predict. While I have mentioned some macroeconomic factors above, I am generally skeptical of attempts to explain style leadership from the top down. Back in 2022, when sticky inflation prompted the largest interest-rate hikes in a generation, US growth stocks fell much further than value. A popular narrative arose: Growth stocks are more sensitive to interest rates. Higher rates, it was said, devalue the long-dated earnings of fast-growing companies with pricey shares. Latest Fed commentary has solidified a “higher for longer” rate stance, which historically benefits value investing strategy as discounted cash flows are less sensitive to rate volatility compared to high-growth equities.