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.
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