Investment Styles: Value Takes the Lead at the Start of 2026
With AI continuing to represent a source of tension in financial markets, it is particularly interesting to assess how the relationship between the two equity styles—Growth and Value—is evolving. After a recovery in 2025, the Growth style has deteriorated again, while Value has benefited from sector rotation and a sentiment less oriented toward risk-on.
The chart above shows the performance of the relative strength ratio between US Growth equities and US Value equities. As can be seen, the indicator maintained a clearly upward trend until the end of 2025, before reversing course and breaking below the 200-day moving average in early 2026. Currently, the index is at its lowest level since late last spring and remains in a decidedly bearish configuration.
The chart above also represents the performance of our Health Score for the two equity styles. Here too, we see confirmation of a Value style that is clearly in better shape than Growth. Our analysis shows Value firmly in the lead across all monitored components (trend, momentum, trend strength, volume, and volatility), while the correlation between the two styles has fallen into negative territory (-0.08).
Is there hope for a recovery in Growth relative to Value? For now, the numbers suggest there is little. Statistically, a health score above 70 points—as in the case of Value—could represent a signal of a potential reversal, or at least a reduction in the strength of the move. On the other hand, there are signs of exhaustion in the bearish pressure that has brought the overall Value score back below 65 points.
