From ATX Portfolio Advisors:
What do you prefer, to buy the most current technology, styles, and trends or to wait until they go on sale? Those tendencies apply to investors just as they do consumers.
Ernest Hemingway once answered the question of how he went bankrupt, "Two ways. Gradually, then suddenly." While there are always lessons to be learned from those that may not have had successful investing outcomes, it is really just Hemingway's choice of words (arguably his greatest asset) that I wish to use as a device for making my point this month.
While examining one of America's greatest authors financial misfortunes would likely make for a good blog article, I am going to focus on the resurgence of Value stocks in the most recent quarter. You see, growth stocks have had a moment in the sun since 2007. Growth stocks (trendy and expensive) have outpaced value stocks (out of favor and less expensive) in 12 of the 17 years since 2007, or about 70% of the time. That stands in stark contrast to the longer term trend where value has beaten growth about 60% of the time since 1927.
In Q3, value beat growth by 3.82% and year to date by 1.98%. Historically, value has beaten growth by an annual average of 4.07% since 1927. Even more impressively, in the 58 years that value "won", the average outperformance was 14.83%!
All that is to say that perhaps this is just a blip in a trend that has greatly favored the Teslas and Nvidias over the Fords and Intels, or it could be a gradual shift that will suddenly be upon us. Time will tell. See more about this and other recent market events in my Q3 2024 Market Update.
If you would like to learn more about ATX Portfolio Advisors, let's Get Acquainted.
Principal
jeff.weeks@atxadvisors.com
(512) 537-5955
www.atxadvisors.com
Click HERE to schedule an appointment or call.
What do you prefer, to buy the most current technology, styles, and trends or to wait until they go on sale? Those tendencies apply to investors just as they do consumers.
Ernest Hemingway once answered the question of how he went bankrupt, "Two ways. Gradually, then suddenly." While there are always lessons to be learned from those that may not have had successful investing outcomes, it is really just Hemingway's choice of words (arguably his greatest asset) that I wish to use as a device for making my point this month.
While examining one of America's greatest authors financial misfortunes would likely make for a good blog article, I am going to focus on the resurgence of Value stocks in the most recent quarter. You see, growth stocks have had a moment in the sun since 2007. Growth stocks (trendy and expensive) have outpaced value stocks (out of favor and less expensive) in 12 of the 17 years since 2007, or about 70% of the time. That stands in stark contrast to the longer term trend where value has beaten growth about 60% of the time since 1927.
In Q3, value beat growth by 3.82% and year to date by 1.98%. Historically, value has beaten growth by an annual average of 4.07% since 1927. Even more impressively, in the 58 years that value "won", the average outperformance was 14.83%!
All that is to say that perhaps this is just a blip in a trend that has greatly favored the Teslas and Nvidias over the Fords and Intels, or it could be a gradual shift that will suddenly be upon us. Time will tell. See more about this and other recent market events in my Q3 2024 Market Update.
If you would like to learn more about ATX Portfolio Advisors, let's Get Acquainted.
Principal
jeff.weeks@atxadvisors.com
(512) 537-5955
www.atxadvisors.com
Click HERE to schedule an appointment or call.
