P/E Divergence Between Growth and Value Stocks: The Wrong Way [View article]
value is out of favour and has been sold relentlessly over the past 12 months by the majority of investors. "growth" will follow and come crashing down - once the herd starts realizing that there ain't no v-shaped economic recovery anytime soon, but rather, a prolonged subpar growth environment that squeezes profit margins and incomes alike. regarding value stocks' valuation, apart from finance and homebuilding, these stocks are pretty cheap. the graph obviously is distorted by low profits/losses by banks, insurers and homebuilders. there are sectors out there that offer stable, and mostly safe dividends of 6-10% which have been beaten downalong with everything else. these will be stocks to shine over the coming 2-3 years when most money for investors from the stock market will come from dividends rather than (almost non-existant) stock price appreciation
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value is out of favour and has been sold relentlessly over the past 12 months by the majority of investors. "growth" will follow and come crashing down - once the herd starts realizing that there ain't no v-shaped economic recovery anytime soon, but rather, a prolonged subpar growth environment that squeezes profit margins and incomes alike.
May 20 03:40 am
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All Comments by fxtrader07 »P/E Divergence Between Growth and Value Stocks: The Wrong Way [View article]
regarding value stocks' valuation, apart from finance and homebuilding, these stocks are pretty cheap. the graph obviously is distorted by low profits/losses by banks, insurers and homebuilders.
there are sectors out there that offer stable, and mostly safe dividends of 6-10% which have been beaten downalong with everything else.
these will be stocks to shine over the coming 2-3 years when most money for investors from the stock market will come from dividends rather than (almost non-existant) stock price appreciation