Value vs. Growth
I have read a number of articles comparing value vs. growth strategies. Almost all of them suggest that growth has recently outperformed and should continue to outperform value in 2008. Take a look at this one for example:
Looking for growth stocks when there is not much growth
posted by Arash @ 12/14/2007 11:57:00 AM
1 Comments:
Growth companies seem to outperform when credit is contracting because they can access the equity markets to fund growth. Value companies tend to need bank financing and so tend to have more access to capital when credit is plentiful. Where are we now? The Fed rate is obviously going down but bank lending is more unclear.
I have to say I've mostly shunned growth in favour of value most of my investing career, but this club has opened me to investing in growth!
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