Search
 
Expert Opinion

Investing with ‘style’: growth and value stocks

When looking at value versus growth stocks over longer periods of time, divergent patterns have emerged.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Man drawing a red line prevailing upward Which style has performed better, growth or value? On a month-to-month basis, one style will generally outperform the other or vice-versa. Over a longer periods of time, divergent patterns have emerged. (Photo: Shutterstock)

It is commonly stated that investing and asset allocation involve the choice between three asset classes: stocks, bonds and cash. However, it has long been believed that certain types of stocks behave differently from other types of stocks.

This concept was first developed by Graham and Dodd in the 1930s, who believed that value stocks provided a premium return due to their true value exceeding their prevailing price in the market.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.