Russ discusses why growth is likely to continue to outperform value for a while.
The value drought persists. Large cap growth, measured by the Russell 1000 Growth Index, is beating value, measured by the Russell 1000 Value Index, by approximately 450 basis points (bps, or 4.5% points) year-to-date and by a similar amount during the past 12 months.
Growth's recent out-performance conforms to the post-crisis norm. Focusing on price returns, since 2010, growth has outperformed value by an average of approximately 350 bps a year. The out-performance has not only been meaningful, but it also