Eight stocks to play the rotation in value

With the U.S. stock market reaching all-time records, thoughts turn to next year, and whether the long-awaited shift to value stocks has arrived.

Since late August through Dec. 18, the Vanguard Value ETF is up 12.8 per cent while the Vanguard Growth ETF is up 10 per cent. Not huge outperformance, but value is outdoing growth more recently. Value and growth are typically seen as opposites. Value companies have mature businesses with steady but modest growth and sometimes strong pricing power. Growth stocks, on the other hand, are companies with growing sales and earnings in which the expectations for future growth in investors’ eyes remains strong.

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