- Inflation Inflection.
- Inflation will drive the inflection change for Value Stocks to outperform Growth Stocks.
- Rising inflation will cause a contraction of high price to earnings and price to sales ratios.
- Growth will underperform Value as this occurs.
- Growth has gone up over 500% since September 2008 while Value is up 186%. This is a reverse of the Period before September 2008 to March 2000 where Value beat Growth.
- Growth outperformed Value from 1990 to March 2000, the peak of the internet bubble.