How much time and effort should investors put into trying to time shifts from growth to value, and vice versa? Our guess is not a lot. Trying to make those sorts of macro-type calls is likely a side show for most investors. Investors are better off spending their time focusing on improving their own methodology, which if effective will capture some of these relative moves over time. Aside from a couple instances of sharp outperformance, value and growth have been in a standoff for the better part of a decade. That being said after a period of relative growth stock performance it seems like value is coming back to the fore. This might be a boon to those investors who have been betting on a move in larger, higher quality stocks in 2010. In today’s screencast a look at the growth and value spread.
Items mentioned in the above screencast:
Betting on high quality large caps in 2010 was a relative loser. (Bloomberg)
Is there a shift afoot from growth to value? (Dynamic Hedge, Financial Adviser)
Weekly chart of iShares S&P 500 Growth (IVW)/iShares S&P 500 Value (IVE). (StockCharts)