The last time value stocks beat growth by this much was 2022 — the year of the last major bear market
MarketWatch
β’Thu, 06 Aug 2026 19:57:00 GMT
π° What Happened
A MarketWatch analysis notes that value stocks have beaten growth stocks by the widest margin since 2022, the year of the last major bear market. The article examines what this rotation away from high-flying growth toward cheaper value names signals for the broader market.
π The Backstory
In 2022, rising interest rates and a tech selloff crushed growth stocks and triggered a major bear market, while value names held up far better. A similar magnitude of outperformance in 2026 suggests investors may again be rotating toward undervalued sectors as they reassess valuations, interest rates and the durability of growth earnings.
π― Why It Matters
A broad shift from growth to value can signpost changing market leadership, risk appetite and expectations about rates and the economy. The comparison to 2022 raises questions among investors about whether the current dispersion of performance foreshadows renewed market turbulence or simply a rotation within a broader bull market.
A MarketWatch analysis notes that value stocks have beaten growth stocks by the widest margin since 2022, the year of the last major bear market. The article examines what this rotation away from high-flying growth toward cheaper value names signals for the broader market.
In 2022, rising interest rates and a tech selloff crushed growth stocks and triggered a major bear market, while value names held up far better. A similar magnitude of outperformance in 2026 suggests investors may again be rotating toward undervalued sectors as they reassess valuations, interest rates and the durability of growth earnings.
A broad shift from growth to value can signpost changing market leadership, risk appetite and expectations about rates and the economy. The comparison to 2022 raises questions among investors about whether the current dispersion of performance foreshadows renewed market turbulence or simply a rotation within a broader bull market.