Has value’s day finally arrived?

For years, growth stocks have outperformed value stocks to the point that the outperformance of growth shares is at highs not seen in 100 years, according to Research Associates.

But value stocks, companies that appear inexpensive and grow slowly, outperformed this past week as growth shares, companies that appear expensive but grow quickly, continued to falter.

A small sample size but a simple reversion to the mean over a year would mean value stocks outperform by 77 per cent.

This is a topic John O’Connell and I will discuss this week and we’ll post that conversation to the website.

In the meantime, have a look at this chart, courtesy of The Economist, which shows growth versus value since the mid-1990s.


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