The Return of Value Investments
Thursday, 27 May 2021
Value-oriented investments have returned to prominence in the stock market, with indications that they may lead the next market cycle. This investment style has shown strong returns over the past eight months, and it is characterized by investing in companies with positive but moderate earnings and profits, usually in the single digits and above, that are trading at low prices relative to similar stocks.
Value stocks, essentially, are trading at prices below what they are currently worth. In contrast, a growth-oriented style of investing is characterized by seeking companies with strong earnings and revenue growth in the mid-teens and above, even if the companies aren’t profitable yet. Growth investments have dominated over the last ten years, with significantly better returns. However, value stocks are making a comeback. Jay Pluimer explains why - and what it could mean for your portfolio - in this episode of Flourish Insights.
Check back next week for more Flourish Insights with Jay Pluimer and don't forget to check out our insights blog at https://www.flourishinsights.com
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