• Asad Gourani, CFP®

Chart of the week: Value Stocks Are Back (Well, At Least For Now)

Updated: Jan 18, 2021

Growth vs Value Investments

2020 has been an extraordinary year to say the least for the markets. From the fastest bear market in history, some of the biggest one-day declines on record, to unexpectedly strong market recovery and a march towards all-time highs all within a few months.

It’s no secret that the recovery wasn’t even to begin with, large growth companies in general and disruptive new technologies more specifically that are able to not only survive during this environment but thrive as we transitioned our lives online have not only done very well but arguably carried the market higher while value and small-cap stocks were left far behind.

Since September, we finally began seeing a rotation in these trends led by optimism around the newly available vaccines in the market that could help us return to normal. Which resulted in Large Value outperforming Large Growth, Small-Cap outperforming Large-Cap, and International stocks outperforming Domestic stocks.


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