MarketWatch Premium: Value stocks tend to beat growth stocks when inflation accelerates — but the usual explanation is completely flawed

United States

There’s no way of knowing for sure why value stocks have suddenly built such a huge lead over growth stocks.

But we can fairly confidently say what was not the cause: Higher inflation.

This likely will come as a surprise, since the almost universally held belief is that higher inflation helps value stocks relative to growth stocks.

The…