Most investors focus on the top-line return of the stock market. The SPX was positive at 3.2%, but the real action was the rotation from growth to value. Value stock returns increased by double versus the overall index and beat growth by more than 50%. Nevertheless, value still underperformed growth for the first quarter. Momentum has done very well this quarter with strong relative returns versus the index. This is with a backdrop of low volatility, correlation, and dispersion with stocks in the index.
What is also interesting is the decline in Mag 7 performance versus classic value for the month. Perhaps this mega-cap hype has reached a peak.
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