While value investors share a lot in common -- both look for stocks with low price-to-fundamentals stock ratios and both agree that value stocks
"co-move" with one another.
This strategy calls for buying value stocks
and selling glamour stocks.
Summary: Data from Russell Indexes shows that growth stocks in Asia continue to outperform value stocks
Whether it's growth stocks, value stocks
, momentum stocks, stocks benefiting from emerging growth in China or our stock-of-the-month report, each product is represented with its own distinct marketing message.
A 1998 article in Forbes magazine indicated that value stocks
outperform growth stocks by 4%, and carry substantially lower risk as well.
are those companies with a low price-to-book.
The idea is not to add value stocks
when the market turns down.
For balance," says Reading, "Guy's portfolio holds Vanguard Value Index Fund (VIVAX), which holds the low-priced value stocks
in the [Standard & Poor's 500-stock index].
Many investors are asking whether "value" stocks still represent good value for one's investment dollar, and if so, under what conditions value stocks
can be expected to generate good performance.
For the three months ending in August, indexes analyzed by Merrill Lynch (ML) showed value stocks
up just 6.
This will no doubt sort itself out when the Fed raises interest rates, but what happens to value stocks
in the meantime?
Another investor who has felt the chill of the stealth bear market is Tom Bartkoski, whose diversified portfolio is weighted toward so-called value stocks
, or those whose prices are low relative to earnings, assets and sales.