Growth Stocks Takes the Lead

Here’s a look at the S&P 500 Growth Stock Index compared with the Value Stock Index:

Lately, growth has taken a lead, which is what you would expect in a rising market. There’s also another relationship: growth usually outperforms value when interest rates are rising.

The long end of the yield has climbed over the past few weeks but it’s nothing too dramatic yet. However, it might turn into something. I still think the Federal Reserve will raise short-term rates sooner than most people expect.

Posted by on October 28th, 2010 at 1:55 pm

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