Do you know if your retirement portfolio is overexposed to growth stocks?
Over the last decade, growth stocks have performed significantly better than value stocks. Over the past year, however, it appears the pendulum has swung to favor value stocks and recent data suggests the trend is accelerating.
For the quarter just ending September 30, The Wall Street Journal reports the 5-year returns decidedly favor growth stocks. During that period, the Dow Jones US Total Stock Market Growth Index has a 12.0% average annual return. By comparison, the Dow Jones US Total Stock Market Value Index yielded an 8.8% annual return.
These return numbers have flipped over the last year. In the past 12 months, the DJ US TSM Value Index beat its