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#MarketWatch Premium: Value stocks tend to beat growth stocks when inflation accelerates — but the usual explanation is completely flawed

#MarketWatch Premium: Value stocks tend to beat growth stocks when inflation accelerates — but the usual explanation is completely flawed

Challenging conventional wisdom on value versus growth, inflation and interest rates

There’s no way of knowing for sure why value stocks have suddenly built such a huge lead over growth stocks.

But we can fairly confidently say what was not the cause: Higher inflation.

This likely will come as a surprise, since the almost universally held belief is that higher inflation helps value stocks relative to growth stocks.

The…

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