With the surging economy and the recent shift in monetary policy, many investors are worried about rising interest rates and potential inflation. A little historical information can provide valuable perspective.
Since the 2009 financial crisis, value investing has struggled to keep up with the broad market and had an even tougher time keeping pace with high-flying growth stocks. This long stretch has led investors to consider dumping their value investments for passive indexing or growth strategies. We think a little long-term perspective is needed and dumping value for growth now could be a costly mistake.
It’s important for investors to understand how different investment strategies work and how each performs under various market conditions. The chart below highlights 10 investment strategy groups and their performance ranking over the last decade. When building long-term growth portfolios, allocating among different strategies can help to reduce anxiety without sacrificing returns.
Get our current take on the markets and economy with Athena Market View. This interactive application is updated monthly with perspectives from Behavioral, Economic, Valuation and Technical viewpoints.