Has Growth Become Value? (Reprise) March 2007 Dennis Trittin U.S. Equity Portfolio Manager Since the peak of the market bubble in mid-2000, value stocks have outpaced growth stocks by an unprecedented margin. The resulting compression in stock valuations has reached historic proportions by many measures, and is causing many value managers to find value in growth stocks. This unusual market opportunity last occurred in 1988 and set the stage for a powerful reversal. This commentary provides an overview of:   Relative performance of growth and value stocks Current valuation landscape Causes for the value move Potential catalysts for a change in style leadership Request this Research A note about our research Our proprietary research is made available to our institutional clients, and many of these published papers are available to other institutional investors as well. If you are not a Russell client, but are an institutional investor, we welcome you to request this research piece. We only require your contact information on a short request form. For more information about our research, please contact Rob or Gerry:   West Coast   East Coast Rob Ciro Director 866-926-5934 Gerry Lillis Director 866-459-4128 Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently over the long term. Such investments may provide minimal dividends which could otherwise cushion stock prices in a market decline. Stock value may rise and fall significantly base, in part, on investors' perceptions of the company, rather than on fundamental analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments. Value investments focus on stocks of income-producing companies whose price is low relative to one or more valuation factors, such as earnings or book value. Such investments are subject to risks that their intrinsic values may never be realized by the market, or, such stock may turn out not to have been undervalued. Investors should carefully consider the additional risks involved in value investments. USIMSLRC2068			Related Information Request this Research   Contact Details West Coast contact Rob Ciro Director 866-926-5934 East Coast contact Gerry Lillis Director 866-459-4128 Printer friendly version of this page