While trying to time the market is often unwise, growth investing is most suitable for investors who believe strong market conditions lie ahead.
According to a study from New York University’s Stern School of Business, “While growth investing underperforms value investing, especially over long periods, it is also true that there are sub-periods, where growth investing dominates.” The challenge, of course, is determining if these “sub-periods” are occurring. While trying to time the market is often unwise, growth investing is most suitable for investors who believe strong market conditions lie ahead.