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.
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.