Pursuits
Growth Trade Poised to Fizzle as Market Favors Value
This article is for subscribers only.
The strongest sign the U.S. economic recovery is accelerating may be coming from the stock market.
Rising retail sales, consumer confidence and industrial production are helping propel investors toward U.S. value stocks and away from growth stocks, which lose favor when prospects for economic and revenue expansion are strong. The Russell 1000 Value Index, which includes companies that are cheaper than market averages, rose 7.7 percent in December, the highest relative to the Russell 1000 Growth Index since August 2009.