ULVM News and Press, USAA MSCI USA Value Momentum Blend Index From 08/30/22

Summary The value rotation story has been hard to miss - it’s a trend that’s been underway since late 2020 and has since continued to gather steam. A theme often heard in the narrative is that value had been floundering relative to growth for a long stretch leading u...

Historically, the best time to overweight value stocks has been in the early stages of a recovery, when economic growth is accelerating, and value tends to be cheap. Aside from energy, few sectors or styles have produced positive returns in 2022, but until recently value consistently ...

The Fed is intent on raising interest rates to fight inflation and must balance the risk that creates for economic growth. In an analysis of growth versus value stocks using data since 1927, we found value had achieved greatest outperformance in periods of moderate to high inflation. ...

If you think of all the different index providers, each has its own definition of the fundamentals that it believes denote “value.”. If stocks can experience severe reductions in their price-to-book value ratios (another way of saying an increase in book-to-price ratios)...

Earnings for the S&P 500, according to Howard Silverblatt’s work at S&P, are expected to rise 7.7% in 2022. Growth stocks were grossly overvalued going into that bear market and they took the brunt of the damage. Real estate did well last week with rates falling bac...

The year-over-year change in core CPI peaked in March and is coming down, albeit slower than we’d all like to see. The economy is slowing in some areas and inflation is still high but probably peaking. Bond yields are starting to look pretty attractive relative to stock div...

MSCI U.S. Growth has underperformed its Value counterpart by 16% in the first 4 months of 2022 and had a tough end to 2021 as well. The fact that growth traps are more painful than value traps is, in one sense, not really a surprise. Value stocks are already companies that investors d...

Stocks had a ripsnorter of a rally last week and a lot of people are pondering the question in the title over this long weekend. Sentiment is certainly negative right now by several measures. Sentiment surveys (AAII, Investor’s Intelligence, etc.) are universally negative becau...

Our rising price problem is, more than anything, a supply problem, and reducing demand is certainly one way to tackle it. But returning to the pre-COVID growth rate doesn’t mean we are headed to recession, that contraction is in our immediate future. US stocks and REITs wer...

Large-cap growth stocks outperformed small-cap value stocks by over 700 basis points (bps) annualized from 2012 to 2021. This stretch of whopping outperformance - a cumulative gain of 508% for large growth versus 211% for small value - stands in stark contrast to the findings of acade...