Is Growth Ready to Outperform Value? – A Follow Up

Yesterday I posted on a graphic I found that displayed trends in value vs. growth. Today when my Morningstar Advisor newsletter showed up in my inbox, there was a link to this article: Are Growth Funds Poised to Sprint? This article goes into more depth about the lengthy conversation that has been ongoing in the original post. A few good comments from the article that tie into what I posted about yesterday:

The overlap between growth and value managers isn’t a complete anomaly. Value managers have to consider a company’s future growth when assessing relative value measures or when modeling a firm’s intrinsic worth. Likewise, growth managers have to figure out how much they are willing to pay for a company’s future growth potential. But the fact that skilled fund managers are fishing in each other’s ponds suggests some parity in the marketplace.

and:

The strong performance of value over growth has undoubtedly left some investors overexposed to value funds. You may find that now is indeed a good time to add to growth–not because it is about to take off, but because it’s the smart long-term portfolio move to make.

Courtesy of: Are Growth Funds Poised to Sprint?