S&P 500 Growth Index / S&P 500 Value Index The Value vs. Growth differential has overshot the previous extreme at the height of the Dotcom bubble. See also “Will Value Ever Outperform Growth?” and “The Value vs. Growth Differential Has Never Been So Extreme.” Picture source: Bloomberg
U.S. Yield Curve and Growth/Value P/E Ratio The chart below shows that the shape of yield curve explains nearly 50% of the variation in value vs. growth multiples. Actually, when the U.S. economy is sluggish, investors prefer growth stocks. Picture source: BlackRock, Inc.
Will Value Ever Outperform Growth? When the U.S. economy is weak, investors prefer growth stocks. But value could outperform again, when the U.S. economy will be stronger. Picture source: Ned Davis Research
Value of U.S. Corporate Bonds by Rating Since the Great Recession, the U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. If the U.S. economy goes wrong, this is bad news for investors. Picture source: The Wall Street Journal
Growth Has Outperformed Value Since 2015 Is is time for value stocks to shine? Actually, tech stocks contribute to widening the gap between growth and value. Picture source: Wells Fargo Investment Institute
