A month for the history book's - growth's outperformance
Growth stocks have massively outperformed value stocks during the current stock market rally. The Russell 2000 Growth/Value ratio's 14 month RSI is at the highest level since the dot-com bubble.
Such extreme momentum among small cap growth stocks relative to small cap value stocks has only occurred 3 other times since 1980:
- February 1980: stocks fell -20% over the next month
- December 1999: near the peak of the dot-com bubble
- July 2015: stocks cratered in August
As you would expect, this was bearish for the Russell 2000:
Likewise, large cap growth stocks are outperforming large cap value stocks. The S&P 500 Growth/Value ratio's 14 month RSI is also at the highest level since the dot-com bubble:
This happened in September 1998, when stocks dipped over the next week before surging in the final 1.5 year run of the 1990s bull market.