Let me preface everything I am about to say with this: I do not have a crystal ball.
In fact, no one does.
Anyone who says they can accurately forecast the future is trying to sell you oceanfront property in Kansas.
But that doesn’t mean we can’t examine trends to find investable ideas with the highest probability of occurring.
In this episode of The Bull & The Bear, I give you my bold prediction for the stock market in 2022.
Growth Stocks vs. Value Stocks: No Comparison
There’s an ongoing debate within the investing community as it tries to answer one question: Which is a better investment, growth stocks or value stocks?
The chart below could hold the answer.
This is the Wilshire Growth/Value Ratio chart. It divides the Wilshire U.S. Large-Cap Growth Index by the Wilshire U.S. Large-Cap Value Index.
It’s a basic way to compare large-cap value stock performance versus large-cap growth stock performance.
When the ratio is moving higher, it means growth stocks are outperforming value stocks. Conversely, when it’s moving lower, value stocks outperform growth stocks.
The ratio peak was in 2000 when internet stocks were all the rage and sent growth stocks through the roof.
In today’s episode of The Bull & The Bear, I’m going to tell you what that chart means and how it relates to my bold stock market prediction for 2022.
More Money & Markets Predictions for 2022
The Money & Markets team has more bold predictions and insights into what’s on the horizon in 2022:
- Beyond 2022: Invest in 5 Mega Trends for Multiyear Profits
- 2022 Market Prediction: Inflation’s Next Big Move
- The Thing About 2022 Market Predictions…
- My Bold Cannabis Prediction for 2022
The Bull & The Bear
Led by Adam O’Dell and a team of finance journalists, traders and experts, Money & Markets gives you the information you need to protect your nest egg, grow your wealth and safeguard your financial well-being.
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Safe trading,
Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.