Is the Growth Correction Ending?

Since the middle of 2007 the S&P 500 Pure Growth index has clearly outperformed the same value index. Between the December 2008 high and the March 2009 low the growth stocks remained relatively stable (some even gained) while most value stocks declined to make a new low. Growth's relative strength increased significantly during that period and has since come back in line with the longer term trend.

Stocks that had declined the most were acquired with enthusiasm as confidence returned to the market, but now the value stocks have more than likely gotten ahead of themselves and we would expect the growth play to continue. (Note that in spite of today's 1.15% decline Google (GOOG) is up 88bps.)

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Comments

[Flying Bird:]

Awesome post!! Growth stocks are leading the way this morning!

Jul 09 08:34 AM