FYI: Growth stocks are at risk of topping out, according to Bank of America Merrill Lynch analyst Stephen Suttmeier—and value stocks are well positioned to stage a comeback.
To determine the relative value of growth and value stocks, Suttmeier divided the Russell 1000 Growth index by the Russell 1000 Value index. This price ratio has been climbing this year, reaching a high only exceeded by the level reached during the dot-com bubble.
When will value overtake growth? Suttmeier turned to the ratio’s Relative Strength Index, or RSI, for some clues. The RSI, used to measure price momentum, is calculated by dividing a security’s average gain during up periods with its average loss during down periods over a specific time frame.
Regards,
Ted
https://www.barrons.com/articles/value-stocks-set-to-overtake-growth-stocks-analysts-say-1537897484?mod=hp_RTA
