the explanation to a practice exam question says: “Growth stocks are more likely to outperform during a recession as there are few other firms with growth and a premium would be priced into growth stock valuation. During an expansion, many firms are doing well and the valuation premiums for growth stocks may decline” does anyone else disagree with this? isn’t there p/e contraction during a recession and growth stocks are hit harder? wouldn’t the company that was growing at 25% due to a good economy slow to say 10% growth and thus a lower p/e multiple and price whereas a solid blue chip, low p/e, high dividend company (i.e. JNJ) would hold up better? i.e. in 1999 I want to own growth, in 2001 i want to own value.