Growth has strongly outperformed value for about 5 years now. Technology has been the major component of appreciation in the market over this 5-year period and 2017 in particular. As an example, through September, the technology sector is up 26% year to date, versus the Russell 2000 Value up only 5.7% as a measure of value stock performance. As in all transitions it does not occur all at once, there is a weening from one style to another. As we have seen, cycles can last a good 5-6 years, so the trend in value outperforming could last awhile when it truly gets going.

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PVG – All Tactical Allocation Monthly Update (October 2017)