The June 27, 2005 edition of Business Week

The current edition of Business Week is out and this is the 2005 Mid-Year Investment Guide issue.

On page 124, an interesting article caught my eye... "Now the Real Value Is in Growth" - and this tends to echo some comments that I have read elsewhere by several stock market observers.

The article points out the fact that after more than five years of sitting on the sidelines, in the past three months, the Russell 1000 Growth Index has nosed past the Russell 1000 Value Index by a little more than a percentage point.

That may not seem like very much, but the shift is huge considering that growth stocks, and the mutual funds that invest in them, have been lagging their value rivals since the year 2000.

Growth mutual funds - which focus on companies with significant earnings growth - are a core holding in many portfolios. And while growth funds have been closing in on value funds since March, the typical growth fund is still down by 1.7%, while the average value fund lost only 0.1% through the year ended June 10.

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