MACROSCOPE 34: What does the rotation to value from growth mean for your portfolio?
The big investment theme this week has been the rotation to value stocks from technology, the quintessential growth sector. What does this mean for your portfolio?
Most stocks can be classified as value or growth, depending on certain characteristics or “factors.” Index leader S&P Dow Jones Indices uses three factors each to measure growth and value. Growth factors are defined as – three-year change in earnings per share over price per share; three-year sales per share growth rate; and momentum (12-month % price change). Value factors are – book value to price ratio; earnings to price ratio; and sales to price ratio. Click to read the rest of Macroscope 34.
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of IA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
How do we elevate your wealth?
It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.