The growth versus value binge was a key story for 2023. While 2022 was a value year, 2023 proved to be driven by growth names over value as measured by the ratio of RLG/RLV (Russell 1000 growth over value ratio). It is notable that this was a short value play and the ratio of growth to value is near all-time highs for the last 10 years. The ratio is also on a monthly basis above previous highs from the dot-com era. This growth switch came despite higher interest rates. The growth firms were able to pass higher costs onto consumers as not the case for value stocks.
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