The eternal battle, growth vs value. This ratio SPYG / SPYV has helped in the past in spotting peaks and throughs of the SPX. But for the las few years, is better at timing bottoms.
It did in the 2018 correction, in the Covid crash of 2019 and is doing it now. The ratio starts to go up just before the market does. Because that's what a bull market is, high risk assets outperfom low risk assets.
In healthy markets, Growth outperfomrs Value!
As for now, I'll pay close attention to determine the strength of the market. If this ratios does well, the market should do well.
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