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Growth proxy indices, the SVX is up 32.65% compared to the SGX up 21.88% since DALI was launched. This performance is far more exacerbated by looking at the date of the reversal on the relative strength chart of the SVX vs. SGX. This chart reversed up on 10/3/2000 to suggest Value, and since then the SVX is up 19.4% compared to the SGX which is down 19.3%. Making major changes in market leadership it not a "flip the switch" event. It is a process that can take several months. For instance, in 2000, the process of seeing the relative strength changes from growth to value took place by and large from February to May. Needless to say, DALI continues to get closer and closer to seeing the Growth box highlighted for the first time in years.

Again, while we have seen a narrowing in the performance of this gap between Growth and Value, it has been more prominently seen in the Small Cap area. That is, the Small Growth indices are performing much better relative to the Small Value indices then the Mid or Large Value indices are performing relative to the Mid or Large Growth indices, respectively. This can be seen in the DWA Vanguard Market ETF Portfolio, that can be found under the ETF Tab. This portfolio shifted out of the Small Growth and into Small Value back in October 2000. Just last week we saw the Vanguard Small Cap Value ETF [VBR] give a relative strength sell signal versus the Vanguard Small Cap Growth ETF [VBK] in order to cause the portfolio to shift back into Small Growth and out of Small Value. As a matter of fact this was the first shift in the Vanguard Market Portfolio in nearly 5 years!


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