Growth Stocks or Value Stocks..Which is Better?
 

i know this is all personal preference,but, in your oppinion, which type of stocks do you prefer and why?

Re: Growth Stocks or Value Stocks..Which is Better?
 

I [img]/images/graemlins/heart.gif[/img] cheap (value) growth stocks

Re: Growth Stocks or Value Stocks..Which is Better?
 

Pepsi

Re: Growth Stocks or Value Stocks..Which is Better?
 

im fairly new to all this but my finance professor wont shut up about growth

Re: Growth Stocks or Value Stocks..Which is Better?
 

growth seems to be much more risky. As much of the value is based on future earnings, a small change in gorwth rate can really throw off your model.

Alos, historically value stocks have done better than growth.

Re: Growth Stocks or Value Stocks..Which is Better?
 

All stocks are value stocks at the right price so the destinction is meaningless.

Re: Growth Stocks or Value Stocks..Which is Better?
 

If your time frame is very long, then value. However, growth and value have a tendency to ping pong. Sometimes growth is better, sometimes value is better.

I read an interesting analysis about the relationship between the global yield curve and growth vs. value.

It says that when the yield curve is steep, i.e., when long-term interest rates are much higher than short-term rates, then value is better. But, when the yield curve is relatively flat, as it is today, then growth is better. The report has historical data to support it.

Like anything, it's not 100%, but the correlation appears to be better than random.

Re: Growth Stocks or Value Stocks..Which is Better?
 

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All stocks are value stocks at the right price so the destinction is meaningless.

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