US value vs growth update: growth style making new lower low.

Bonjour, 

A quick update on the styles performance. It is interesting to note that Value is now making new highs against the growth style. 

If you also observe the company results, you will see that defensive growth companies often miss expectations and are priced down while cheap early cyclicals miss and are flat to up.

Are fund managers wrong in buying late-cyclicals? Could it be that we are in recession NOW and that we should be buying early cyclicals stocks to play the new economic cycle? 

One argument to say we are in a new cycle is the victory of Keynesian policies globally: Japan is pumping prime, Italy is loosening austerity, Spain and France are doing the same. Even in the US, the tightening is not as tough as expected. 

This can generate some surplus growth in H2 2013 and H1 2013 that the market is starting to price in by favoring the value style. 

Something to follow for sure.