Chart of the Day - Monday, November 11th, 2019

Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). It's a chart of the S&P 500 over the past nine years. In the bottom pane is a ratio chart of value vs. growth ($IVE/$IVW) with blue boxes highlighting periods where value is outperforming growth. Value has been outperforming growth for the past couple of months. There's a common misconception out there that growth needs to outperform value for the broader market to move higher. However, Mark points out that it's perfectly normal to see the broader market move higher during periods in which value is outperforming growth, especially at the start of a cyclical bull market.