Growth stocks and value stocks moving together after 4 decades
According to a very recent WSJ article, S&P 500's growth and value stocks are trending together, behaving quite opposite as to how they have been for the past 4 decades. Before this, statistical analysis done by J. P Morgan indicated a negative correlation between the two. Growth stocks are known for the fast rising profits, while value stocks are relatively underpriced to the rest of the market. These two kinds of securities, which usually move in opposite directions, moving in the same direction might suggest that investors are growing wary of risk, and are opting for low risk stocks in the current market where profit margins are low.
What do you guys think? Any specific reason for this behaviour? Also, how much longer do you guys think this trend can continue?