Growth Outperforming Value

The S&P 500 Growth index is currently up 7.01% year to date, while the S&P 500 Value index is down 3.21%. This growth outperformance is following a pattern that has been in place for some time now. The bottom chart highlights the ratio of the S&P 500 Value index to the S&P 500 Growth index. When the line is declining, Growth is outperforming Value. As shown, since October 2007 (when the last bear market began), the ratio has been in a steady downtrend. Will Growth continue to do better than Value, or is Value due for a period of outperformance?

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Comments

[Shale Gas:]

Arbitrarily classifying stocks as either "value" or "growth" is an invalid method of tracking the performance of these styles. If you examined the actual stocks in these indexes you would be shocked at the classifications.

Jun 16 07:27 AM

[Lynn:]

YTD the financial and utilities sectors have held Value stocks down, while the energy sector has helped Growth stocks outperform the SP500.

Jun 16 06:17 PM

[Did U Think...:]

Oh please. "Growth" is a euphemism for "bubble". Yes, bubble stocks were shorted harder than "value" stocks and thus they will pop up faster. But they will also be the short targets once again when the fed runs out of fake money to throw at the problem, a situation brought on by higher interest rates.

Jun 17 02:13 AM