We continue our series featuring data from VR Research on “characteristics of a market top.” The summary is broken down by corporate, valuation, economic, market, and sentiment metrics. These are not hard and fast rules, rather a guidepost to help investors better understand where we’re at in the market cycle. In the subsequent months, we will tackle each category and determine if the current environment is exhibiting signs of topping out. This week we break down market fundamentals.
Source: VR Research
Note:We selected the market characteristics that were fundamental in nature rather than technical (charting, following patterns, etc.).
Value Managers Are Losing Their Reputation
U.S. Growth stocks (blue) have led the way in 2017.
What about pre-financial crisis (2007)? Again, U.S. Growth stocks (blue) outpaced Value.