Granite Wealth Management

Growth vs. Value: Has the Baton Been Passed?

After a long stretch where growth investors were richly rewarded and value investors took their position in the rear, late 2021 saw a shift. In the market drawdown of 2022, value investors jumped ahead…..and saw much less decline in value.

When exactly did Value start its outperformance?

After a multi year period when growth shined, November of 2021 saw a change in trend. In the 14 months since then, Growth (with a focus on superior earnings and concentrated in multiple technology sectors), has outperformed Value (concentrating on dividend yield, balance sheet strength, and price to book) in only 2 months…..March 2022 and August 2022.

Has that relationship changed in 2023?

So far, yes. With the robust January we have experienced …S&P up 5.78% we do expect the baton to remain in the hands of Growth.