• 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.