2022 continues to shape up as a year where value will finally out-perform growth. You can see from the chart below that the performance gap is beginning to close, but still has a long way to go. The differential between growth and value got to historic extremes during the latest Fed uber-easing cycle, even surpassing the dot-com bubble of 1999-2000. Now that the Fed has embarked on a tightening path this spread should continue to converge. Look for value to be an out-performer to growth over the coming quarters. The value names also tend to have a much higher and safer dividend yield to help during these tumultuous times.
