A Boglehead posted on Mon Mar 23, 2020 11:47 am:
"I did not listen to the buy and hold don't sell low crowd at the beginning of this crisis and I am extremely happy I did not. I dumped half my small value while TLH after the first week of losses. I should have liquidated it all, but still have significant holdings in DFA target value I."
This is a great example of someone who is not fully committed to a life-long small-value factor strategy and should never have invested in these factors to begin with. Underperformance is permanently locked-in when capitulation occurs - and it will occur.
If you do not understand what you are buying and are not 100% committed to a factor-tilt strategy for decades, you will eventually sell when it underperforms and then your portfolio will permanently underperform the market. In retrospect, this person should have only owned a total stock market index fund.
Complexity is risk. You're seeing it here in realtime.