Growth Value Rotation
Market Cycles
Definition
Market cycles where investor preference alternates between growth stocks (companies with high earnings growth) and value stocks (undervalued companies), driven by economic conditions and interest rate changes.
Key Points
- Growth outperforms in low-rate environments
- Value benefits from economic recovery
- Rotation driven by rates and growth expectations
Examples
Tech growth stocks led 2010s bull marketValue stocks outperformed in 2021-2022Quick Info
Category
Market Cycles
Related Topics
style rotation
factor investing
market leadership
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