The end of the value trade may be near as investors push prices beyond economic growth expectations.
Interestingly, it was just last year that I wrote: “The Rotation To Value Is Inevitable.” The critical point of that article was this:
“The market’s surge higher since the financial crisis, which has been driven by massive fiscal and monetary policies. It has been nothing short of extraordinary. Currently, the S&P 500 is trading at the greatest deviation from its long-term exponential growth trend in history.”
The unparalleled monetary policy use to push markets higher, massive fiscal spending designed to keep economic growth positive, and corporations shunning future growth for “share repurchases” remains the common thread.