Market Shift from Growth to Value

Short-Term Bounce or Long-Term Trend?

By Yulin Long & Steve Rossi - October 2018

A Reversion to the Mean

The rotation from growth to value was not unexpected, and we view it as a reversion to the mean precipitated by the sharp spike in 10-year Treasuries. After periods of such extreme growth dominance, our analysis of historical patterns finds that the Russell 1000® Value Index may outperform the Russell 1000® Growth Index over the next 12 months.

Yulin Long, Ph.D., CFA
Portfolio Manager
Senior Quantitative Analyst
Steve Rossi, CFA, FRM
Portfolio Manager

Market Shift from Growth to Value: Short-Term Bounce or Long-Term Trend?

Notes from the Disciplined Equity Desk

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