Growth and Value stocks

The following may change the performance data and conclusion.

* You may want to select value or growth in different secular markets as follows.

Secular Bull Market (approx. 1980-2000). I bet growth is better.

Secular Bear Market (approx. 2000-2013 and 1960-1980). I believe value is better. I expect bull market will start in 2013 as the two wars are ending. My theory.

* Holding periods. I would use 1 year for value stocks as we're buying against the trend and it takes longer for the value to be recognized. I would use 3 months for momentum stocks.

You can annualized the returns for comparison.

* Survival bias. If you use ETFs, it will be ok. We have several big financial companies go belly up in 2008.

* Value is a major category and dividend stock is under Value. Growth is the other major category and Momentum is under Growth.


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(c) TonyP4 2012. Written in 4/10/12. Last updated in 4/10/12.

Disclaimer:

Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.

All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.