Baseline Analytics Blog

Market risk assessment tools and tactical investment opportunities driven by curated financial insight

Growth vs. Value: Trend Shift in the Works?

Growth stocks, as represented by the Russell 2000 Growth Index, have generally outperformed value stocks since mid-2010 (see the chart below, denoted by the green boxes). Since the start of 2016, however, value has outperformed growth, as can be seen by the large red box on the right side of the chart.

A 50-day exponential moving average is employed to demonstrate the price activity in favor of one versus the other.  What is interesting on the chart is the top portion, which shows the RSI of the Growth/Value stock ratio.  That RSI was deeply oversold and has crossed above the 30 level, a bullish development.  This may be an indication of a shift in sentiment back toward growth stocks.

 

GV

Mr. Palmerton is the Founder of Baseline Analytics, and has 30 years of experience spanning corporate finance, asset management and financial markets research. He has held positions as CFO, Director of Finance, and Financial Management and Analysis roles for Fortune 500 and multi-national firms (ADP, Honeywell, Linde Group) as well as for early-stage and emerging growth ventures).

Bob founded Baseline Analytics in 2005. With the objective to utilize technical analysis of the financial markets, coupled with macro-economic trends, Baseline Analytics strives to keep investors on the right side of the market at all times. Bob developed the TrendFlex indicator, comprised of a blend of financial indicators that assess the risk of a change in market trend. Baseline Analytics’ TrendFlex models are utilized as the basis for asset allocation strategies of The Absolute Return Market Trend Portfolio. Mr. Palmerton’s articles and blogs can be found on Seeking Alpha, Finding Technicals and Baseline Analytics.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Saturday, 29 April 2017

The Absolute Return, LLC.

THE ABSOLUTE RETURN Logo

 

Investment News

Comerica Economic Blog