Conviction: 4/5
Value looks ripe for long-term out-performance against Growth stocks (Russell 1000 Value vs Russell 1000 Growth)
Just put in double bottom, similar to what happened in 2000 peak.
HOWEVER, this is bad for general markets, as most of the out-performance that happened last time in 2000 was due to Value GOING DOWN LESS than Growth...
RISKS, the level of double bottom does not seem to correspond to any established support level... so could always go down, perhaps wait until breakout of downtrend to go all in?????
Also, data set is relatively short for Value/Growth relationships, it is known that these relative performances can play out over decades (as you see from Growth out-performance since 2006 ish)... so we only have MAYBE 1 full cycle...
Value looks ripe for long-term out-performance against Growth stocks (Russell 1000 Value vs Russell 1000 Growth)
Just put in double bottom, similar to what happened in 2000 peak.
HOWEVER, this is bad for general markets, as most of the out-performance that happened last time in 2000 was due to Value GOING DOWN LESS than Growth...
RISKS, the level of double bottom does not seem to correspond to any established support level... so could always go down, perhaps wait until breakout of downtrend to go all in?????
Also, data set is relatively short for Value/Growth relationships, it is known that these relative performances can play out over decades (as you see from Growth out-performance since 2006 ish)... so we only have MAYBE 1 full cycle...
