Growth Versus Value Versus MFI

Growth Versus Value Versus MFI

It was interesting this morning, I was reading from a discussion board and a guy said that he felt by the end of the year that value stocks would return into vogue and that high beta stocks would sell off.  I started to respond that I agreed but I felt that rotation was already going on.

But then I thought, "let me check first".  I thought Value was having a good 2018 as my MFI Index is doing so well.  But check out graph below of overall growth v value in 2018:

Wow, color me very surprised.  Growth is up 6% in Russell 2000 and Value is basically flat for 2018.  Now let us add Russell 3000 and MFI Index.

So you can see the MFI Index is kicking butt so far, DESPITE value losing to growth.  That is fascinating.  What happens when value starts beating growth (assuming that ever happens)?