Generally, small stocks have been stronger performers after recessions than large stocks. It has also been the case that value stocks tend to outperform growth stocks after a recession.
The image below illustrates that, on average, the cumulative returns of value stocks/small stocks outperformed those of growth stocks/large stocks, one month, six months, one year, and three years after the end of a downturn.
Source: StateTrust’s analysis of Morningstar data. Performance shown is not indicative of the performance of any specific investment. An investor cannot invest in an index, such as the one these graphs are based on. Past returns are no guarantee of future performance. These returns are based on historical information, from sources believed to be reliable, but accuracy cannot be guaranteed, and these returns can vary in future time periods.
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