Market Minute June 2022

Why do we believe value stocks will outperform growth stocks over the next several years? For the same exact reason that growth stocks outperformed value stocks in 2020 and 2021. Earnings growth! In 2020, stocks in the S&P 500 Growth Index saw earnings increase 9.7% while stocks in the S&P 500 Value Index saw earnings decline 25.6%. Last year growth stocks again increased earnings at a faster pace than value stocks, 58.4% versus 49.3% , respectively. Is it any wonder that the S&P 500 Growth Index returned 76.16% and the S&P 500 Value Index only increased 26.54% over the last two calendar years? (Source: Capital IQ).

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Posted on Thursday, June 2, 2022 @ 9:00 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.