This year has seen growth stocks trounce their value peers, in a sharp reversal of 2022’s pattern. But it hasn’t always been smooth: Momentum has shifted on a dime more than once this year, with technology, energy, banks, and other sectors in and out of favor.
The
S&P 500
Growth index has returned more than 24% year to date, doubling the S&P 500 Value’s 12% return including dividends. The March U.S. regional-bank turmoil hit the value index—which has a significant weight in financials—and more economically sensitive shares. Around the same time, the excitement over artificial intelligence shifted into high gear, setting off a rally in
Nvidia
(ticker: NVDA) and other merely tangentially AI-exposed growth stocks.
What next? There is a range of economic outcomes being debated for 2024 with different implications for the path of interest rates and inflation—and thereby the macro case for growth or value outperformance.
Perhaps stocks that show attributes of growth, value, and momentum investing styles can sail through the turbulence. Barron’s screened the
Russell 1000 index
for stocks…
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