Rather than be a “growth” or “value” investor, I’d rather be a “what works” investor. Sometimes growth can be attractive, and sometimes value.
To see where we are in the game, I have tried to use proxies for growth, value, and the indices. Here are the trailing PE’s of various indices:
UKX 17.1 FTSE 100 – a market proxy
T1X 21.9 Techmark Focus – a proxy for growth
HIX 14.5 FTSE350 Higher yield – a proxy for value
LIX 17.3 FTSE350 Lower Yield – another proxy for growth
T1X/UKX = 1.28. Looking at my favourite chart from the Peter Lynch book, I see that growth is not in the super-cheap category, but it is towards the lower end. Value shares still don’t look particularly attractive.
What do other’s think? Do you have a favourite measure for measuring relative attractiveness? Do you think there’s an abundance of value shares?