Value stocks have generally been outperforming growth for the past 5 years, but is growth ready for a comeback? When looking at historical trends of growth vs. value it appears that there is a visible cycle that occurs. The image below illustrates this more clearly.
So does this mean you should add more growth to your portfolio? Well, it is impossible to predict when one style will outperform the other, but excluding growth stocks or funds from your investment mix could have an effect on your returns. It may be time to review your investments and see if there is an opportunity to begin to introduce a little more growth into the mix.
Image courtesy of Morningstar
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.