As U.S. stocks flirt with record highs, the well-documented underperformance of value stocks accelerated. But underneath that underperformance lies an interesting trend that could give investors encouragement, even as some prepare for a market correction. Within the broader growth sector, the most expensive, high-growth stocks have outperformed, while cheap, high-growth stocks have severely underperformed. More specifically, value has exhibited a near-zero return spread in low-growth stocks, and an extreme negative spread in high-growth stocks. Typically, the value premium is rewarded in both high- and low-growth pockets of the market. The key is to find growth at the right price, because overpaying for growth does not pay off over the long run. But simply buying the cheapest high-growth stocks is not necessarily the answer either.view more white papers
By downloading a white paper, you are agreeing to have your contact information shared with the content sponsor, who may then contact you.
All white papers posted were created by the listed authors who are solely responsible for the research, finding and all materials contained therein. Pensions & Investments has not verified or edited the materials (other than for length and style) and does not necessarily agree or disagree with the analysis and positions expressed by the authors. Reference to any company, product or service does not imply recommendation or sponsorship by Pensions & Investments.
For more information on submitting a white paper, please contact Richard Scanlon at firstname.lastname@example.org or 212-210-0157.