Hey kids! Did you know that some types of investments, called 'value stocks' and 'growth stocks', are having a bit of a race? For a long time, growth stocks (companies expected to grow quickly) were winning. But recently, value stocks (companies that are already successful) have been doing better! This is kind of like a game of tag, with the lead changing hands.
- Value stocks performed better than growth stocks in 2022 and are winning so far in 2025.
- Growth stocks did better for many years before that.
- This shift happened because our economy is more about services than manufacturing now, and interest rates also play a big part.
| Time Period | Value Stocks Performance | Growth Stocks Performance |
|---|---|---|
| 2000-2010 | +8% | -15% |
| 2022-2025 (early) | + (better than growth) | - (worse than value) |
