Value Still Outperforming Growth But For How Long?

I am a true believer in over weighting value investments. Let's face it, value has always outperformed growth over the long run (rolling twenty year period). However, there have been periods of time when growth significantly outperforms value. Are we entering into a growth cycle? Very possibly! We could begin to see growth stocks outperform value style investments in the near future. I am beginning to explore the idea of increasing the allocation of large growth stocks in client portfolios but I am not convinced the market is moving that way.

Here is an interesting white paper that discusses the possible emergence of growth style investing.

http://www.managersinvest.com/index/cms-filesystem-action?file=/ManagersInsight/GrowthVsValue.pdf

The Financial Pragmatist
Libby Mihalka