What can we help you find?
Back to the blog

Aggressive Growth Leadership

U.S. stock market leadership has been narrow in 2015. As noted in our blog postdated August 19, all of the S&P 500s returns this year can be attributed to five companies (through 8/17).The remaining stocks, as a whole, detracted from performance.

This narrow leadership has been centered on aggressive growth stocks. The adjacent chart8.24.15 ranks large cap mutual funds according to their Value-Growth score (the same metric Morningstar uses for its style box). Strong returns have been limited to the most aggressive mutual funds, which also exhibit very high valuations as measured by Price-to-Earnings ratios.

2015 portfolio returns have been modest for investors who do not have sizable exposure to this area of the market. Even so, we recommend investors be cautious toward these stocks, as they are richly priced and it now has been four years since the last sizable market pullback.

Investment Advisory Team

Questions about this article?

Hefren.com is sponsored by Hefren-Tillotson, Meticulous Wealth Management Since 1948. Hefren-Tillotson is headquartered in Pittsburgh, Pennslvania and has locations in Downtown Pittsburgh, Butler, Greensburg, Wexford and Southpointe in the South Hills. Our financial advisors and investment advisors offer full service, personalized financial planning and retirement planning. Our MASTERPLAN approach can help you plan for the future with a focus on asset management and portfolio management. If you’re looking for time-tested financial advice in the Pittsburgh area, Hefren-Tillotson financial planners are here to help. Securities offered by Hefren-Tillotson, Inc., member of FINRA and SIPC.