By Kim Clark
From Kiplinger’s Personal Finance
It looks like value stocks are making a comeback after being clobbered by growth stocks for about a decade.
Value and growth stocks move in cycles. The 1980s were led by value stocks; the 1990s by growth. Value beat growth for seven consecutive years starting in 2000; then growth dominated through 2021.
Could this be the start of a new surge for value stocks? If you look back far enough, you might conclude that value never really went away.
“There is pervasive historical evidence of value stocks outperforming growth stocks,” concluded a report last year by Dimensional Fund Advisors, an index-investing specialist. From 1927 to 2021, Dimension calculated, value stocks annually returned 4.1 percentage points more than growth stocks, on average….