Displaying items by tag: S& 500

(New York)

Value stocks have been hurting for years. They have lagged growth stocks considerably over the last decade, and have been underperforming growth stocks for so long that even some ardent value fans say the shares might never rebound. However, an increasing group of analysts are saying that value is set to stage a big comeback versus growth. Some indicators show that a reversal of growth stocks is imminent, and P/E ratios are running so high that value looks likely to appreciate. Morgan Stanley analyst Michael Wilson thinks that the current rotating bear market will end with growth and small caps sinking.

FINSUM: We don’t see much of a catalyst for growth stocks sinking while value stocks rise. Further, if stocks fall, they could all fall in unison without value seeing any outperformance.