Growth stocks again take over the place of value stocks
Growth stocks again take over the place of value stocks
During the last months of 2018, many investors exchanged their growth stocks for value stocks. And that was not surprising, because value stocks can generally also be classified as defensive shares. And the demand for such shares is increasing in times of uncertain trading times. However, that time is already behind us.
- Value shares can be described as shares of listed companies that have generally participated for a while and have proven in the past that they can also pay dividends in bad times. Growth shares, on the other hand, are shares of listed companies where the stock price is mainly driven by high sales expectations (such as the Netflix, Facebook and Tesla shares).
Growth stocks are loved again
During the past few weeks, interest in growth stocks has flared up again. The graph above, from Kimble Charting, even shows that in a few weeks the Growth / Value Ratio has risen again to above the level of last year. And that could possibly be a good sign for the stock markets as a whole, because the Growth / Value Ratio has been on the move since the start of this Bull Market.
With this important ratio, is this new record high a precursor to a new record price on Wall Street?
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It's going to be difficult for the S&P500 to get above 2900