Growth stocks have out-performed value stocks for nearly 15 years, with a major surge from 2017 to 2020.
But the past two years have seen this turn into more of a tug-o-war as value stocks attempt to regain long lost favor.
Is a reversal of fortune underway?
It appears that way. Growth stocks leadership is waning and today’s chart highlights this. Below is a “monthly” performance ratio chart of the Growth Stocks ETF (VUG) versus the Value Stocks ETF (VTV). As you can see, the ratio double topped at (1) while breaking short-term trend support.
Yikes! And it is now testing support at (2). If this support fails to hold, it will suggest that a change of leadership is underway. Time for value stocks to shine? Stay tuned!
Growth Stocks ETF (VUG) / Value Stocks ETF (VTV) Ratio Chart
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to email@example.com for details to get set up.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.