Stop the Bickering: It's Not Growth vs. Value, It's Growth and Value
Value funds and growth funds are like records by Bob Dylan and Marvin Gaye: They're clearly different, but your collection isn't complete without both.
As usual, the market's gyrations give a false impression that growth and value funds are an either/or proposition, with value ruling the roost at present. Tech-light value-fund managers, who typically scour the market for bargains, have weathered the Nasdaq Composite's 44% collapse over the past year much better than tech-heavy growth-fund skippers, who often pay steep prices for shares of companies with flashier earnings growth. As we'll see, the two styles' long-term returns are pretty similar and owning funds from both camps tends to give you the same gains with less volatility. ...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,334.03 | 1,098.32 | 2,184.26 | 34.87 |
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