After falling nearly 32% and significantly underperforming its value counterpart in 2022, the Morningstar US Large-Mid Cap Broad Growth Index, one of the Morningstar Broad Style Indexes, has turned the tables thus far in 2023, rising 8.5% in the month of January.
This is nearly 4 percentage points more than the Morningstar US Large-Mid Cap Broad Value Index, which rose 4.7% in January.
Dan Lefkovitz, Strategist, Morningstar Indexes
“January saw a sharp reversal of the style dynamics that characterized 2022. Technology and consumer cyclical stocks like NVIDIA, Tesla, and Apple logged big gains in the first trading weeks of the year. Many investors clearly bet that the market was pricing in too much bad news coming into 2023 and favored some of the same growth stocks that were battered in 2022 by rate hikes and recessionary fears.”
To see more from Morningstar on the latest factors at play in the ongoing tug of war between value- and growth-oriented investments, access the latest Morningstar Quarterly Style Monitor on the Morningstar Indexes Website.
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