With changes afoot in both the global economy and the world's stock markets, the style investmentpendulum is swinging back towards growth, after a run of value outperformance
Over the past six years, investors have become accustomed to value stocks outperforming growth. Now, as we experience the first signs of a shift in economic and monetary environments, the debate over a potential comeback of growth style has resurfaced. What are the definitions of growth and value? Morgan Stanley Capital International (MSCI) defines the constituents of their style indices by using several variables. For value stocks, it looks at price to book ratio, 12-month forward price/earnings ratio and dividend yield. Growth stocks are judged by forward earnings per share (EPS) growth...
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