The best investment opportunities are often scary.

History teaches that when valuations are extreme, "mean reversion," a move towards historical norms, is likely. Once value stocks turn, the recovery can be fast and intense.

Many investors prefer comfort, chasing what is popular and loved, rather than pursuing what is out of favor. The markets do not reward comfort.

Whatever is newly expensive has two attributes: wonderful past returns and, in most cases, lousy future returns.

Diversify. But carve out 10 to 20 percent for the most unloved part of the market: emerging markets value.

The best investment opportunities are often scary.

Design a portfolio you are not likely to trade... akin to premarital counseling advice; try to build a portfolio that you can live with for a long, long time.