Value Growth Crossroad

Two weeks before we got Fukushima’d I wrote the following:

Value typically holds up better than growth good during corrective periods.  I’ve been talking about the growth to value rotation since Christmas.  Once we finish the difficult work of correcting, growth stocks will be where you want to be.  Make no mistake.  This is the time to figure out which margin call you would like to purchase.

Value to growth hit its high of the year on the Fukushima lows.  Growth is highly probable to come back in style as we melt higher, as evidenced by the recent gambling on Chinese internet stocks.

There’s an old saying that states: “no stop goes untouched in the S&Ps.” Sell stops got hit when Standard and Poors decided to warn on US debt and shake the tree.  Which means that buy stops are back in play.

 


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