More Signs of Value’s Vindication

By Todd Shriber via

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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