Here's My Top Stock to Buy in August
Last year, Bank of America/Merrill Lynch released their analysis of an interesting study that examined the performance of growth stocks versus value stocks over the 90-year period from 1926 to 2016. The results showed that value stocks have outperformed growth stocks, with an annual average gain of 17%, versus growth stocks' 12.6%.
However, since the end of the Great Recession we've seen a notable reversal, with growth stocks outperforming value stocks by a notable margin. Historically low interest rates have played a big role in this switch, since growth companies have been able to borrow at a cheap cost to expand their operations or acquire new businesses. With the Federal Reserve walking on eggshells when it comes to increasing interest rates, it looks as if growth stocks could continue to outperform value stocks for years to come.
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Source: Fool.com
