Value Versus Growth:
There seems to be incessant chatter about this debate, and over the last decade value was supposed to outshine growth, yet it never did on a consistent basis. It would for maybe a couple months, but the relationship would always go back in favor of growth. That may be changing, and this time “feels different”. I know famous last words in investing. I just take into account PRICE action as my guide. Below on the bottom of the XLV chart, a ratio chart comparing the more mundane, mature healthcare names, look like they may be ready to bask in the sunshine against their more volatile biotech names. Keep in mind at the end of bull markets, and I am NOT calling for one, the value plays will start to outperform. The XLV over the last one month period is lower by 2%, while the XBI is down 10%. It is a short term view to take, but the XLV is also down 4% from most recent 52 week highs, while the XBI is 17% off its annual peak made just 4 weeks ago. Perhaps it is a signal to overweight “value” healthcare names over “growth”, or just have a larger cash position to take advantage of when a bullish catalyst (candlestick pattern) happens to take advantage of an oversold biotech space. It could be months or in a few sessions.