Cambiar Insights

  • August 16th 2017

    Growth Cycle - Near Historical Peak

    Growth Cycle - Near Historical Peak

    The recent market cycle, favoring growth, is nearing two standard deviations, a potential sign of a shift in investor sentiments.

    For almost 30 years, value investing has on average outperformed growth, but the market environment following the financial crisis in 2009 has been more amenable to the latter.

     
    R1000G Vs R1000V - Rolling 10 Year

     

    For small cap stocks, we believe that recent trends indicate a slow movement in favor of value after reaching the two standard deviation mark.

    R2000G Vs R2000V - Rolling 10 Year

     

    Potential mean reversion may suggest improving landscape for value investors.

     


    Source: Morningstar Direct. Date range: 1.1.1980 - 7.31.2017

    Certain information contained in this communication constitutes “forward-looking statements”.  Due to market risk and uncertainties, actual events, results or performance may differ materially from that reflected or contemplated in such forward-looking statements. Nothing in this post shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced.  Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts may be based upon third party sources that are deemed to be reliable, however, Cambiar does not guarantee its accuracy or completeness.  Past performance is no indication of future results.  All material is provided for informational purposes only and there is no guarantee that the opinions expressed herein will be valid beyond the date of this communication.

    Tags: InFocus  Large  Small  Growth  Value  Russell