Friday, August 25th, 2006
Birinyi: shift from value to growth not far off
Charles Kirk had an excellent interview with money-flow expert Laszlo Birinyi. Kirk asked him if value stocks will continue to outperform growth. Birinyi’s opinion was good news for growth investors:
Value stocks certainly have been a great place to be invested over the last several years, but like anything else, there is always a reversion to the mean. I remember very clearly, back in 1998-2000, value investors were about as popular as Congress. While it’s hard to say when the shift will take place, the fact that value stocks are currently as a group more expensive than growth stocks tells me that the shift probably isn’t too far off. Tech, which is everyone’s least favorite sector now, could benefit from this trend as the launch of MSFT’s new operating system (if it ever occurs) will spur a new binge of buying in that sector.
This entry was posted on Friday, August 25th, 2006 at 6:58 pm and is filed under Value Versus Growth. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
