- After positive COVID vaccine news, value stocks gapped-up over 6% Monday morning while growth stocks only rose about 1%.
- Growth stocks have outperformed value in 2020 by a level roughly equal to that of 2000, just before the great tech-bubble crash.
- Paradoxically, the median revenue growth rate of the top-five growth stocks in VUG has declined over the past five years while their valuations have risen.
- Growth stocks are subject to bearish technical and fundamental factors and may see large declines due to regulatory efforts from the new government.
- Risks to growth stocks include bubble-like performance and valuations, a COVID recovery negative rotation trade, regulatory risk, declining growth, and growing mistrust surrounding "Big Tech".
For further details see:
VUG: Potential COVID Vaccine Is Bad News For Growth Stocks