LV on Friday 29th September -Value or Growth?

“Value vs. growth” seems to be the question on everyone’s lips these days. Any interview with any strategist seems to end up at that point: should investors buy value or growth? Should we expect the FANGs (or FAANGs, or indeed FAAMGs) and other recent momentum stocks to continue to lead the market? Or is the leadership shifting to another sector? 
 
What’s interesting from a cursory glance at the relative performance of the S&P1500 value vs S&P1500 growth indices, is that the two indices move very much in line with each other during the first phase of cyclical bull markets. Once the Federal Reserve begins its tightening, though (i.e. from 1998, 2004 & 2014), the performance of the indices begins to diverge. In the run up to the 2000 stock market peak, the growth index outperformed. In the run-up to the 2007 peak, value outperformed, while more recently growth has been outperforming again. Furthermore it’s not clear what determines which style is going to outperform at the end of each bull market