Why The Stock Market Will Soon Favor Value Investing Again

0
45
Why The Stock Market Will Soon Favor Value Investing Again

Value Investing is a famous investment strategy which helps to identify quality shares (by using an approximation of the stocks’ value) that are currently undervalued in the market. The worth/value of every stock is based on the performance of the company as well as a view of its future sustainable profitability (known as normalized return on equity). Since the beginning of 2009, the global markets have faced a financial repression era. It was a period of low-interest rates as well as risk-encouragement that has led to a perfect time for growth investing. Furthermore, the market has awarded a scarcity premium to almost all those companies that can grow in such an environment of limited economic expansion prospects. Meanwhile, the market has paid less attention to the traditional value factors, such as P/E (price-to-earnings) ratios and dividend yields. However, these factors have provided substantial return premiums over the long term. The goal of my research article is to identify the points about «Why The Stock Market Will Soon Favor Value Investing Again?»

Dejar respuesta

Please enter your comment!
Please enter your name here