The research report linked below is authored by Rory Gillen, founder of GillenMarkets, an investment advisory firm based in Dublin, Ireland.
Value stock investing has trounced growth stock investing over the past 100 years for the simple reason that investors consistently and predictably over-price stocks with positive news flow and under-price stocks with poor news flow. That has not been the case since 2007, which probably now represents the longest stretch on record where ‘Growth Stock’ investing has outperformed ‘Value Stock’ investing.
However, after 13 years of consistent outperformance by growth stocks the evidence suggests that the premium valuation attached to such stocks is once again at an extreme. And a recent acceleration in the trend of growth stock outperformance since the onset of the coronavirus-led economic downturn suggests that the trend has potentially peaked and is possibly close to reversing given that ‘acceleration is a trend ending signal’.
This note outlines the theme in more detail as well as highlighting funds that you can invest in to benefit from any reversal in the trend and how you might time any such repositioning.
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