There was a really great interview between TD Ameritrade and Rob Arnott, who is one of the most respected stock strategists in the field. Keep in mind that the spread between growth and value has literally never been greater. While it is easy to look at the recent past and extrapolate that into the future, it is usually a very misguided approach to do so. I’ll let the video do the talking but here are a few of the interesting points:
“After the Nifty 50 in 1972, value stocks outperformed by almost 100% over the next 5-years.”
“Same thing occurred after the Tech Bubble.”
“After 2008, rebound and outperformance occurred over the next 5 years, but half of that occurred during the first 6 months of the recovery.”
He also talks a bit about the bubblicious valuations of Apple and Tesla.
Here is the video: Rob Arnott TDA video