More Signs of Value’s Vindication

By Todd Shriber via Iris.xyz

There is no denying that through the first three quarters of this year, the growth and momentum factors dominated value, extending a theme that was seen for essentially all of 2017.

For the 12 months ended Sept. 30, 2018, the S&P 500 Momentum and S&P 500 Growth Indexes returned 30.37% and 25.21%, respectively, while the S&P 500 Value Index added just 10.06% over that period, according to S&P Dow Jones Indices.

Of course it takes more than a couple of weeks of market action to undo long-standing trends, but the value factor is showing some temerity in the first two weeks of October. Of the five best-performing S&P indexes to start the month, through Oct. 11, 2018 two are value benchmarks while another two are high dividend indexes. Conversely, the S&P 500 Momentum and Growth Indexes are the second- and third-worst performers, respectively.

“Will defensive factors assume market leadership while Momentum and Growth have a well-deserved respite?” said S&P Dow Jones. “Ten days do not a trend make, but what we see so far in October represents such a potential regime shift.”

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