why growth can keep doing more than value
Conclusion:when someone tells you that value stayed behind growth then...... careful it can stay like this for a long time3 reasons
1.Growth is scarce so people pay more for what is scarce
2.The composition of the growth Indexes is changing so the dispersion in valuations can persist. If it was always one company in any index it was difficult to open a gap forever, but even in this case that was possible.
3.when yields drop (discounting rates drop) and log duration assets (growth have the big cashflows in the future) growth does much better than value.
one great graph from the best investment houses. Blackrock (I don't get anything from them ahahaha)
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