Morgan Stanley Says a Rolling Bear Market Looms for Growth Shares
- Value-growth spread nears lowest level since dotcom bubble
- Cheap shares likely to outperform in next market-wide selloff
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Some of the biggest winners of America’s epic bull market in equities could be headed for trouble, if analysts are correct.
Companies that consistently post high earnings, so-called growth stocks, have been powering ahead of value stocks as their more cheaply priced brethren lag behind in the rally. In fact, the price of the S&P 500 Value Index is nearing the lowest since 2000 relative to its growth counterpart.