Why Your Fast & Furious Growth Stocks Could Soon Blow Their Tires

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Imagine two racing cars. One is called Growth. The other is called Value. They have been racing each other around the same giant track for more than 100 years. Sometimes, Growth records faster lap times. Other days, Value circles the track far faster than Growth. But Value is usually the faster car. That’s why it adds to its lead roughly 8 out of every 10 decades. As a result, it’s thousands of miles ahead.

But when Growth runs well, people often bet in droves. They say, “This time it’s different. Growth will now always win.” But when almost everyone believes in a turning of the guard, Value kicks into gear to increase its long-term lead.

Read the rest of the article here.

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

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