Mellon Equity Associates is predicting that growth stocks will...

Mellon Equity Associates is predicting that growth stocks will outperform value stocks early this year, based on a performance prediction model which looks at fundamental factors such as price-to-book value ratios and interest rate movements. The firm's stock performance model also correctly predicted that value equity would outperform growth equity in 2004, said Bill Rydell, Mellon Equity's president; the Russell 1000 Value index returned 13.1% for the year, vs. 5.5% for the Russell 1000 Growth index.