Growth Indicator Hitting All-Time Highs
Chris Kimble | Apr 05, 2019 03:05PM ET
The long-term trend of growth stocks has been stronger than value stocks for years and years.
Is growth sending a new bullish message to stocks lately? Yes, they are.
This chart compares the Vanguard Growth ETF (NYSE:VUG) to Vanguard Value ETF (NYSE:VTV) on a monthly basis over the past 8 years. The ratio trend remains up, as it continues to create a series of higher lows off the 2011 lows.
The VUG:VTV ratio this month is currently above last year's highest monthly close. If the ratio continues higher, it will send a positive message to growth stocks or value plays.
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