Value Stocks Defy Conventional Wisdom, Besting Growth: Chart

Value or growth stocks? Conventional wisdom suggests value outperforms growth during expansion periods, and languishes during contraction. But according to Bloomberg Gadfly’s Nir Kaissar, when bull and bear market cycles in the U.S. are considered, value’s behavior bucks expectations. In 23 cycles since 1926, the Fama/French U.S. Large Value Research Index bested the Fama/French U.S. Large Growth Research Index during both bull and bear markets -- just barely in the case of the latter.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.