https://magviral.com/value-stocks-are-making-a-comeback-and-heres-how-to-get-started-early/VALUE STOCKS ARE MAKING A COMEBACK AND HERE’S HOW TO GET STARTED EARLY
The US stock market now appears to be risky as valuations are rich as sentiment moves higher. But there is a solution for this: Top up unpopular, cheap stocks.
Stocks are expensive or not but it's very difficult to pick winners these days since many pundits are predicting prepare for *near end of cycle* slowdowns and melt downs
Think dji may go up 5 _10% from here for another 12 or 24 months but we ever know
Comments
We're biased at this house; so this will show in the write.
Understanding that value investing is a "buy it low"; we prefer a buy it low, when present into the growth sectors. However, I'm sure decent money has been made with the more stellar value funds.
The below chart compares two active managed funds in the value and growth areas. I can not vouch for the quality of the value fund relative to other similar funds. And the growth fund is a proxy look only, as this fund is closed to new money, with exceptions being inside of retirement plans, existing owners and such.
From Sept. 5, 2008 to March 9, 2009 the following losses were in place for these two funds:
FSLVX = - 49.2%
FDGRX = - 41.9%
Value may yet have a sustained period of superior performance, vs growth. There is much investment ground to be made up.....by value I won't be there to enjoy.
The chart below is a longer view of total return performance.
Chart of FSLVX v FDGRX , begin Nov. 2001 to date.
As always, be curious in life.
Catch
I have bookmarket this thread and will make a comparison between the sleeves every quarter, or so.