Third, investors will be willing to pay more for safety and predictability, especially relative to what they are willing to pay for risk and growth. There was a perceived opportunity cost inherent in more value-oriented holdings since they had less perceived potential to appreciate. Now this trend is reversing. For these reasons and more, one does not need to believe that growth stocks have to decline further for value to continue to outperform as an investment style. The disparity in expectations of the two styles relative to their current valuations suggests the value cycle still has significant legs to it.
Past performance is no guarantee of future results.
All material is compiled from sources deemed to be reliable but accuracy and completeness cannot be guaranteed. The data presented is taken from publicly available information and is based on advisor's best efforts to present factual information. Given the inherent volatility of the securities markets, it should not be assumed that future investors will experience returns, if any, comparable to those discussed herein. Small company investing involves greater opportunity for growth, but may also involve greater risks, including more limited earnings histories and product lines, and greater price volatility. Investment return and principal value of an investment will fluctuate, so that an investors' shares, when redeemed, may be worth more or less than their original cost.