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?
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
