Subject: Re: OT Large Growth Small Value Divergence
However, over short horizons, such as one year, current valuations have virtually no predictive value.

I often see this statement. So, I don't need to take any action over the next year to change to value as it is a coin toss on which group will perform better?? Or should I look back and see how long the variance from historical valuations has been in place. If it has been 5 to 8 tears or longer, then perhaps I should make the change later this year as we will be getting closer to a real change in the next 2 to 3 years?

It seems like the original statement has two conflicting actions - stay in large growth as it is a coin toss for the next years performance and large growth has been performing well lately,or go to small value because it has been trading below historical averages for a very long time.

Aussi