Strength of value stocks continues

In 1998 only 25% of the stocks in the S&P 500 index managed to produce returns greater than those of the index The successful companies overwhelmingly shared two characteristics: size and growth. The top quintile of the index by capitalisation and by P/E ratio (as a proxy for growth) beat the S&P's own returns, the other 80% underperformed This extraordinary position was more pronounced at the beginning of the year. Thankfully the situation has eased and by the second quarter a broad bounce in previously depressed areas saw 60% of stocks showing some relative strength This broadening of ...