‘In the long run, value outperforms growth’
Aside from sticking with safe and stable names simply as a way to maintain your sanity, the industry often encourages a focus on value stocks by noting they actually yield better bottom results over the long haul. Problem: It’s only true sometimes. Other times, it’s completely untrue.
It’s been especially untrue the last few years. Since this point in the year back in 2003, the iShares Russell 1000 Growth Fund (IWF) has advanced 81%, while the iShares Russell 1000 Value Fund (IWD) has only advanced 67%.
In another 10-year segment, value might lead growth again, or it might not. That’s just it — the landscape of what works and what doesn’t is forever changing.