Insights

In recent years, U.S. market performance has been dominated by growth equities, particularly since the AI-driven rally that began in late 2022. Yet history reminds us that leadership between growth and value is cyclical. Extended periods of dominance by one style often give way to long stretches of outperformance by the other. In this brief paper, we explore why this trend makes portfolio rebalancing critical, the risks of overconcentration in growth stocks, and how large cap value strategies may provide diversification, attractive fundamentals, and the potential for consistent returns. This not a case against growth or for value; it is a case for balance.