This article is part of a regular series of thought leadership pieces from some of the more influential ETF strategists in the money management industry. Today’s article features Paula Wieck, portfolio manager at Nebraska-based CLS Investments.

One of the most difficult investment strategies is value investing (buying assets at a price below fair value). Value investing goes against human nature.

When a stock or sector is doing really well, a plethora of positive research becomes available. It’s much more difficult for people in the media (or even professional investment managers) to write positively about something that’s beat up.

To a novice, it can be pretty easy to get wrapped up in the hype of what’s hot. And that leads to buying at a price higher than fair value, an act that can be devastating to future returns.

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