For roughly the past decade, growth Stocks have outperformed their value counterparts by a wide margin. Investors have not discriminated in their preference for growth stocks over value when it comes to market capitalizations. Small caps have also seen superior performance of the growth sector over value, the same way large caps have.

But the value side of the market may be about to seize the leadership baton. In the year ahead, the combination of economic strength, firming prices, and a less dovish Fed is likely produce higher interest rates across the curve. Theory implies and history shows that during periods of rising interest rates, value stocks tend to outperform growth . . .

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