MarketWatch’s Mark Hulbert says that a couple of historical factors are indicating that value stocks may be ready to finally start outperforming growth stocks again. Hulbert notes that value stocks, which over the long term have enjoyed a significant edge over growth stocks, have lagged their growth peers for the past few years — the longest such period on record. That means a reversion to the mean should be on the horizon. Exactly when that occurs is unclear, but Hulbert does say that his research shows that value stocks tend to put up their best performance vs. growth stocks in the fourth and final year of the Presidential Election Year Cycle, which we’re about to enter.
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