With growth-oriented investing continuing to outperform a value-based approach, we look at whether this trend will continue and what might tilt the balance.
David Einhorn: Value Investing May Be Dead and Amazon and Tesla Killed It (CNBC, October 24)
In a letter to investors, hedge fund manager David Einhorn looks at the future of value investing and how it can compete with growth stocks. “The market remains very challenging for value investing strategies, as growth stocks have continued to outperform value stocks.”
Momentum Is on A Roll. But Will It Last? (Investment News, October 09)
Momentum investing, a subset of growth investing, is on the rise. According to Morningstar’s Tom Lauricella, “Since the start of 2017, momentum – which measures how much a stock has risen in price over the past year relative to other stocks – has been by far and away the most significant factor explaining performance.” However, “if you think your clients don’t have a long holding period and a high-risk tolerance, it might be better to wait until momentum cycles in and out of style once again.”
