This has been quite a year for the performance of growth stocks, and their valuations have become quite stretched, while many value stocks struggle to get back to their Jan. 1 levels.The spending argument Back on Oct. 9, Michael Brush wrote that value stocks were “poised to crush growth stocks” after the November election.
The valuation argument Regardless of what spending we see out of Washington, a quick look at growth stocks points to valuations so stretched that many investors are concerned. Six stocks are listed because the ETF includes Alphabet’s Class A and Class C common shares. The five largest companies in the iShares Russell 1000 Growth ETF make up 37% of the portfolio.
Disney is the exception among the value stocks listed above in that its valuation has more than doubled.
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