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Growth Is A Sell On Rallies, Value Is A Buy On Dips: PreMarket Prep

Growth Is A Sell On Rallies, Value Is A Buy On Dips: PreMarket Prep

The hosts of Benzinga’s “PreMarket Prep” on Wednesday morning continued a discussion of the closing gap between valuation for value stocks and growth stocks in the market.

What Happened: Co-Host Dennis Dick noted that value had several strong pushes on Tuesday during the trading day as investors shift from growth stocks to value stocks.

“You really saw the separation when value stocks ripped all afternoon,” Dick said.

The market is separating growth and value stocks but the gap is getting closer, Dick added. He would use the market opportunities to time trades around this thesis.

“Growth is still a sell on rallies," he said. "Value a buy on dips.”

Why It's Important: Growth stocks could continue to be punished after several of the largest names reported strong earnings and large share buybacks and have been punished by the market: “Value is the only thing making my portfolio move up.”

Dick said it’s not too late to get into value stocks as there could still be three years of value stocks closing the gap. He reminded listeners to time their entries well with dips.

“Growth was ridiculously priced," he said.

Watch the full breakdown in the video:


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