PM Pinnacle Question - Value vs. Growth

[Cluck]

Why does a value investing strategey outperform a growth investing strategy in the aftermath of a recession?
Wouldn’t you want to rotate from a value to a growth strategy as the economy begins to expand (i.e. in the aftermath of a recession)?
In the answer explaination it also notes that cyclical stocks tend to outperform non-cyclical stocks in the aftermath of a recession which makes sense because cyclical earnings would rise during economic expansions, but I can’t wrap my head around the Value vs. Growth.
Thanks in advance for any input!

 

[rexthedog]

It’ a weird one it threw me too.
Just know that value outperfroms immediately after a recession but as the economy starts to expand then you want growth. Essentially there is just a small window of oppurtunity post recession for the value to outperform then its as usual growth.

 

[Cluck]

Yea thats what I figured. The “aftermath of recession” wording is tricky because in the currculium they use absolute terms like “expansions” and “contractions”.

 

[h21]

rexthedog wrote:
It’ a weird one it threw me too.
Just know that value outperfroms immediately after a recession but as the economy starts to expand then you want growth. Essentially there is just a small window of oppurtunity post recession for the value to outperform then its as usual growth.

risk?

 

[tau281290]

Low risk, high return.