RWVG News and Press, Direxion Russell 1000 Value Over Growth From 10/04/21

One of the big themes that we've seen the last few weeks is interest rates rising and value outperforming growth. Strategas' Todd Sohn examines the reemergence of cyclicality following an economic "growth scare." Todd breaks this down before taking us through some timely sector an...

While preference for growth or value investing can depend on factors like the economic cycle or time horizon, uncertainty in the current environment has amplified the growth vs. value debate. Although high-growth investments may seem more enticing during hot equity markets, value inve...

The post-lockdown recovery has been powerful, and most developed economies have seen double-digit gross domestic product (GDP) rebounds from 2020 lows. The reopening trade should resume in coming months. The cyclical stocks that comprise the value factor are reporting stronger earning...

Much of the outperformance of growth vs. value is explained by the persistently low-rate environment. Correlations between performance and the change in 10-year Treasuries seem to be getting stronger. Rolling 1-year correlation between changes in Treasury rates and growth/value re...

The current slowdown was telegraphed by the bond market, and we’re now in the midst of it. There are any number of reasons to think the economy will just keep fading all the way back to the pre-COVID trend of about 2%. I don’t see any reason to believe we are near recess...

Global value stocks surged by 36.9% from November 2020 through May 2021, outpacing growth stocks by a wide margin. Over the last decade, value investors have repeatedly asked what it would take to turn the tide from growth’s dominant outperformance. In our view, five key de...

The economic slowdown we’ve been writing about for months officially arrived last Friday in the form of a particularly weak employment report. But the US economy did still add 235,000 jobs in August. The economic recovery is still intact, even if at a reduced rate of change. ...

After several strong quarters for value stocks, the last few months have seen a sharp reversal in favor of growth. The probability of any particular value stock being a “value trap” in a given year is about 30%. Value stocks are currently trading at a 40% discount to...

Since mid-May, the global rallies in Value and Size factors have cooled, and Quality has staged a robust comeback. The burst in reopening optimism last fall spurred a sharp rotation from Quality into Value, which is more heavily weighted to cyclically sensitive industries poised to pr...

This year’s reconstitution reveals the U.S. equity market increased in size, with the total market cap of the Russell 3000 Index up 51.9% from $31.4 trillion as of last year’s rebalance, to $47.7 trillion based on this year’s rank day (May 7, 2021). Year-to-year c...