Do size and value effects mean that small outperform large or value outperform growth in every year/every month? What should be the correct horizon to invest in the size and the value effects?
No, size and value are something that affects in the long term and not in the short term (every month/year). If the investment time horizon is longer (5 years or more), then it is suggested to invest in smaller companies vs. larger one because smaller companies have potential to grow faster and at a higher rate than large companies. Smaller businesses have a potential to become large businesses over long periods of time.
Value investing also requires longer time (5 years or more) because when you identify value, it may take some time to actually realize the value. If you buy a cheap stock which has value, it will not rise immediately; it may fall further in the short term and then will rise in the long term creating long term value.
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