“Value” hasn’t significantly outperformed “Growth” since 2016 and even then it was only for a year or so.
Is now the time where Value investing comes back in vogue ?
Small and mid-cap value sub-sectors are starting to perform better relative to growth. For large-cap, the Growth out-performance is still material (i.e. 200 bp’s YTD as of 5/10/19).
Summary / conclusion: The consistent theme for the first 4 – 5 months of 2019 is that small and mid-cap value have been narrowing the performance differential over growth, but it’s been a slow transition. The last decent correction that ended in Q1 ’16 saw large-cap growth outperform substantially. With the correction of Q4 ’18, perhaps now value starts to reassert itself.
Thanks for reading.