COTW: Vaccine Announcement Triggers Reversal in Value vs. Growth

COTW: Vaccine Announcement Triggers Reversal in Value vs. Growth

Last week, Pfizer announced positive early results for its coronavirus vaccine.  This sparked a massive rally in the unloved, beaten-down value stocks that have trailed growth stocks on and off for more than a decade.

The chart below highlights one of the more extreme examples with small cap value stocks (as measured by the Russell 2000 Value Index) outperforming large cap growth stocks (as measured by the Russell 1000 Growth Index) by 8.68%, the widest spread since 1992.

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