Monday, February 06, 2017

Value Beats Growth

A trend that I don't see to many pundits commenting on is that over the last year {or in the case of this chart going back to the beginning of 2016} value investing has beaten growth investing.  This trends is most pronounced the further down the market-cap chain you travel.  By that I mean smaller capitalized value stocks outperformed their growth oriented indices by a much larger margin than the larger capitalized indices did.  I'm guessing that a lot of this has to do with the earnings growth recession we've seen for the past few years.  It will be interesting to see if this trend continues if economic growth picks up in 2017.  Note that you can double-click on the chart to make it larger for better viewing.

*Performance data comes from the performance chart utility developed by  While we assume their data is correct, we make no claims and cannot be held responsible for the accuracy of these results.

**Long various indices shown above in both client and personal accounts.  Please note these positions can change at any time without notice on this blog or on any other form of communication including written and electronic.