Sharing Research on Value vs. Growth stocks

We’ve talked a lot about the similarities of the markets in the last few years relative to the late 90’s.  Here is exhibit A of that notion.  This is a chart of the performance of Value vs. Growth stocks since 1998.  We’re approaching the most extreme levels of 1999-2000.  The only saving grace is that many more Allocators and Macro Strategists are starting to question whether it’s time to rotate to value.  I can only hope so, sooner than later too.


Opinions expressed are those of the author and are subject to change, are not guaranteed and are not intended to be a forecast or as a recommendation to buy or sell any security.

Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.

Past performance is not a guarantee of future results.  Index performance is not indicative of fund performance.  To obtain fund performance, click here.

The S&P 500 Growth Index measures growth stocks using three factors: sales growth, the ratio of earnings change to price, and momentum.  The S&P 500 Value Index measures value stocks using three factors: the ratios of book value, earnings, and sales to price.

Perritt Capital Management is the adviser to The Perritt Funds.  The Perritt Funds are distributed by Quasar Distributors, LLC.

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