Here’s a look at how the Russell 1000 Growth and Value Indexes have performed since the November 20 low.
As you can see, the Growth Index (black line) is above its low. The Value Index (gold line), on the other hand, is the part of the market making new lows.
Why? That’s because most financial stocks are categorized as value stocks. But don’t be fooled, many of these stocks are hardly values at all. JPMorgan Chase (JPM) used to indicate a dividend yield of nearly 8%. That was before the company slashed its payout by 87%.