Two weeks ago, we broke down the growth vs. value dynamic, noting that growth appeared ready to take the lead.
That pointed to opportunities in sectors like technology, consumer discretionary, and communications — areas poised for short-term outperformance.
Since then, we’ve seen that thesis play out. Money has been flowing into growth stocks as U.S. markets attempt to rebound from recent weakness. Just look at the Growth ($IWF) vs. Value ($IWD) ratio — it’s been rallying right alongside the S&P 500.
But the bigger question remains: will the secular trend toward growth continue to deliver?
With international markets — which tend to lean more heavily toward value — outperforming the U.S., we could be seeing early signs of a shift in capital toward value sectors.
In tomorrow’s edition, we’ll dive into the near-term outlook for technology — a major pillar of growth.
The next move could define how capital rotates in the second half of the year — and we’ll be ready for it.
