Growth Stocks vs. Value Stocks – A Historical Scorecard

Chart Growth Stocks vs Value Stocks
The chart above shows the relative performance of growth stocks compared to value stocks over ten-year periods dating back to 1937. The blue bars illustrate ten-year periods where value stocks outperformed growth, while the red bars indicate periods where growth stocks outpaced value. As you can see, value stocks have generally outperformed growth stocks – over 75% of the time to be exact. However, over the last ten years, growth has outperformed value by almost 4% per year – the second worst relative ten-year period for value stocks. While many investors and market commentators tout this as a reason to shift more money into growth stocks, we prefer to not let recent performance influence our expectations for market returns. So, while value investors may be kicking themselves right now, it is more than likely that over the long-run value stocks will continue to reward their shareholders with strong returns. 

Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results. Talk to your financial advisor before making any investing decisions.