Investors are willing to pay a premium for growth stocks because the companies’ returns on equity are far superior to those that are less profitable. Historically, cheap stocks caught up with expensive ones when the economy turned the corner. The only exception was the burst of the Internet bubble, when high-flying stocks fell to the levels of the rest of their peers. This time, though, may be different because the Covid-19 outbreak accelerated the secular trend toward tech and the internet, which make up the majority of expensive stocks. Long story short, hold onto the winners. And only add deep value stocks if the plan is to keep them for the next few years. Because valuation is a lousy signal for short-term returns.