Right at limits of tolerance for expanded flat C=200A with 5 waves down with pos divergence wave 5 =wave 3 so value to outperform growth for a while ..Are new highs a given ..no..
Tech rally may be done ...do not think it is based on $AMD $NVDA unless they were A waves moves off the lows ... that be very sneaky but definitely relative outperformance of value short to medium term
Value is currently oversold within a Long-Term uptrend relative to Growth. Would not be surprised to see the recent weakness from Value/strength from Growth abate here.
Here's a monthly chart of $IWD /$IWF (black line, rhs) and the US 10yr yield (orange, lhs) going back 15 years or so. The bottom panel here is the rolling 36month (aka 3yr) correlation between these two. As you can see, the rolling correlation currently sits at 0.88. While not quite as high as a few months ago, it seems clear that yields are still very much...
Just My Market Rotation graph, 1 hour, including extended hours. This is graphing ETF performance divided by SPY, showing relative performance over time.
IJS - iShares S&P Small-Cap 600 Value ETF - Is really outperforming everything. Eventually this has to stop? Dividends are doing well too.
The only other asset class beating it is BTC (not graphed). BTC is the...
If we look at value vs growth you can see some striking similarities to the tech bubble back in 2000 . It may be different this time because of stimulus, but what if it isn't?
Long Russell 1000 Value / Short Russell 1000 Growth
In a market with declining corporate profits and a stagnant real disposable incomes, growth is scarce. However, with bond yields indiscriminately driving equity valuations towards records across nearly all sectors (both cyclical and non-cyclical) value is even more scarce, and becoming scarcer as multiple...
