Edit: 5/17/25 – Blue Wave forecast uncovered for growth stocks outperforming value stocks between now and late August. New chart agrees with other forecasts. Chart has been added to bottom of post.
On March 13th, a post was published referencing the coming rotation toward growth stocks. You can read that post here: Q2 Growth-Value Stocks Forecast 2025
The following chart was published on March 13th 2025 within that post indicating a likely scenario where Wall St would rotate toward growth starting in April:
The following chart is the growth-to-value ratio (light blue line) updated to reflect data up to 5/15/25. The light blue line is the exact same data as the original ratio line (black line). NOTE: The light blue line may not appear to align with the black line due to the fact it is SCALED differently; but be assured, it the same exact data.
To reiterate, as the black/light blue line is rising, it indicates Wall Street rotating toward GROWTH stocks. As the black/light blue line is falling, it indicates Wall Street rotating toward VALUE stocks.
In summary, we are likely nearing a point in time (early June) to look for value stocks to begin to temporarily outperform growth stocks.
5/17/25 – Below, a high probability Blue Wave forecast; and larger, less granular Red Wave forecast. Forecast still points to an overall trend of growth stocks outperforming value stocks into Summer 2025.
