Small Cap Value is out performing the market, and out-performed the market in the 1970s.

Not financial advice, do your own DD.

While no one can predict what the market will do, history shows that the market tends to rotate in and out of industries, asset classes, and domestic/foreign markets in regards to outperformance and underperformance.

Currently, many are unsure of how to proceed in this investing environment after a decade of unprecedented growth and innovation that witnessed large cap tech industry stocks leap ahead the rest of the market. Now, however, with gas prices, inflation, and interest rate hikes have many likening this period to the 1970's, in which the US stock market underperformed (especially large cap growth). A mere .25% interest rate hike and the end of QE have been enough to cause the NASDAQ to correct by almost 20% – and more rate hikes are on the way.

While I'm still personally bullish on tech long term when we eventually rebound, I am opening a position in Small Cap Value. I believe that should we really witness another market rotation and decade of underperformance such as the 1970s, that Small Cap Value will do well. In the 1970's it outperformed massively, and currently IJS, an ETF that tracks Small Cap Value stock index, is down -6.17% YTD. Not great, but so far is beating more conventional investments such as cash (-7.5 Jan and -7.9 Feb 2022) the NASDAQ (-18.99) and the US Market as a whole (-11.83%). When eventually we do recover, Small Cap Value historically as been an asset class that does best in “recovery environment” and “a young bull market”

TL;DR; For me personally I believe now isn't the time to sell tech stocks at a loss, as Tech is still way forward. However, now is the time I'm opening a position in Small Cap Value to make money this next decade should my guess be correct that it will resemble the conditions of the 1970's.