His argument makes sense. The table below highlights the P/E ratio of the growth and value indices for the S&P 500 (large cap), S&P 400 (mid cap), and the S&P 600 (small cap). As you can see, in the mid cap and small cap indices, the aggregate P/E ratio for growth stocks is actually lower than value stocks. In other words, growth stocks are a better value than value stocks (yes, you read that right!).
So investors should invest in growth stocks right? But what exactly is a growth stock? Apparently, that is a tougher question than you would expect. S&P apparently, is not so sure. Currently, there are 162 stocks in the S&P 500 that are in both the S&P 500 value and growth indices.