Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

Stay Away from Large-Cap Value Stocks

by admin December 7, 2024
December 7, 2024
Stay Away from Large-Cap Value Stocks

Growth vs. Value Rotation: The Pendulum Swings Again

Relative Rotation Graphs (RRG) are not just good tools to use in analyzing sector rotation; they’re also a valuable means for visualizing other market dynamics. The relationships between growth and value stocks, or large-cap vs. mid- and small-cap stocks and the combination of these two breakdowns of the market, are prime examples.

The pure growth-value rotation, as shown in the RRG above, tells an interesting story.

Value had its moment in the sun from August to early October, but the tides have turned since then. Around the week ending Sept 27, the value tail started to roll over while still inside the improving quadrant, while the growth tail did the opposite inside the weakening quadrant. Essentially, these signaled the end of a temporary countertrend move.

Now, it’s clear that growth is once again beating value.

Size Matters: Small- and Mid-Caps Take Center Stage

When we add the RRG showing rotations of large, mid, and small-cap stocks, the picture becomes even clearer. Small and mid-cap stocks are still gaining relative strength in the leading quadrant. Meanwhile, large caps are languishing in the lagging quadrant, continuing to lose ground.

A More Granular Look: Where the Action Is

Now, let’s get into the nitty-gritty. We get a more nuanced view by combining the breakdown of the US stock universe into growth and value with large-, mid-, and small-caps. The resulting RRG with six tails, three for growth and three for value broken down into three size segments, paints a vivid picture:

Mid- and small-cap growth stocks are the clear leaders, deep in the leading quadrant and heading further into it. Value small-cap and mid-cap stocks on the right side of the graph are holding their own, although they are losing some relative momentum. Both the large-cap tails inside the lagging quadrant show this segment’s current weakness.

Still, large-cap growth has just started to curl back up a bit while large cap value continues to head southwest. This means that large-cap value is now the weakest segment in the market, being inside the lagging quadrant and traveling on a negative RRG-Heading.

What This Means for Investors

Large-caps in general, particularly large-cap value, is best avoided for now. Small-cap and mid-cap growth stocks deserve your attention — they’re where the action is.

Market Outlook: Steady as She Goes

Despite these rotations, the overall outlook for the stock market in the coming weeks remains healthy.

The S&P 500 chart shows the rhythm of higher and lower lows is intact. Divergences causing concern have been negated, and breadth metrics have normalized—they’re no longer sending too many negative signals.

#StayAlert and have a great weekend. –Julius

0
FacebookTwitterGoogle +Pinterest
previous post
National Police Association endorses Trump pick for FBI director
next post
Double Top on Industrials (XLI)

Related Posts

US Bank Stress Tests: What They Mean for...

June 28, 2024

A Wild Ride For the History Books: 2025...

July 24, 2025

BEWARE! META, TSLA, AMZN, MSFT & AAPL Report...

January 28, 2025

The One Chart to Watch as S&P 500...

May 20, 2024

Here’s Why The Bottom Is Dropping Out of...

January 12, 2025

Nvidia Plunges Over 6% to Mark the End...

June 26, 2024

Failed Bearish Patterns are Bullish for S&P 500!

May 30, 2024

S&P 500 Equal Weight ETF Gains Strength

August 3, 2024

Mixed Signals on the Charts? RRG Reveals Market...

May 28, 2025

The Most Important Chart to Watch Into Year-End...

December 7, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Sydney Sweeney jeans controversy making advertising great again

      August 10, 2025
    • Nagasaki mayor issues chilling warning on 80th anniversary of atomic bombing

      August 10, 2025
    • Kash Patel celebrates major FBI achievements and record seizures during Trump’s first 200 days in office

      August 10, 2025
    • Trump nominates State Department spokeswoman Tammy Bruce as UN deputy representative

      August 10, 2025
    • White House responds to surge in Christian persecution crisis across sub-Saharan Africa

      August 10, 2025

    Categories

    • Business (1,058)
    • Investing (2,793)
    • Politics (3,438)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved