Are value or growth shares best to buy for 2021?

In many cases, companies fall into one of two categories: value shares or growth shares. The former is often made up of stocks priced at low levels relative to their peers or historic averages. Their appeal often centres on their potential to deliver share price recoveries as operating conditions improve.

Meanwhile, growth stocks are those businesses that are expected to deliver an impressive rise in earnings over the long run. They can trade at high prices because of investor optimism.

Investors often focus on buying one type of stock or the other. However, given the uncertain economic outlook, which type of stock will outperform the other over the long run?

Growth shares or value shares?

While it is possible to separate growth…