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Why You Should Allocate To Value Over Growth

Why You Should Allocate To Value Over Growth

by John Alberg and Michael Seckler

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

We recently saw an analysis from StarCapital that provided context for how the market over the last several years resembles the late 1990s and other periods when value strategies underperformed.

As we found their thesis to be compelling, we did our own analysis using the same source data to better understand and expand on their results.

The chart above plots the trailing five-year annualized return of a hypothetical portfolio (the value versus growth portfolio) that goes up when value stocks are outperforming growth stocks and down when growth is outperforming value. The returns of this portfolio were constructed using data...


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