What's the Best Way to Play a Large-Growth Rally?

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Mar 30, 2006
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Morningstar.com

What's the Best Way to Play a Large-Growth Rally?

Thursday March 30, 6:00 am ET

By John Coumarianos



Morningstar analysts have been wondering when the tide will turn--that is, when the large-growth category will come back into favor. Small caps turned into the darlings after the tech meltdown beginning in 2000, and they haven't suffered for investor affection ever since. In fact, the first quarter of 2006 shows a continuation of this trend, with small- and mid-caps leading the way and larger caps bringing up the rear. One change that we've noticed over the past six months or so is that small growth and mid-growth are beginning to outstrip their value counterparts. This hasn't happened in large-cap land yet, where value still rules the roost.



Nevertheless, we don't think large-growth stocks can remain neglected forever, and we've been hearing many fine managers say that large-growth stocks haven't been this cheap in a long time. http://biz.yahoo.com/ms/060330/160104.html?.v=1