While Monday’s massive stock selloff produced one of the worst days for the markets in two years, it also created an opportunity for investors to find good value stocks.
The P/E ratio is by no means the be all, end all metric when evaluating a stock, but at times like this, it is a good place to start before conducting more detailed analysis on earnings, growth catalysts, and other factors.In the month of July, the S&P 500 Value Index gained 5%, beating the S&P 500, which gained 1.1%, and the S&P 500 Growth Index, which fell 9% in the month.
So during a three year period that featured a significant bear market and a significant bull market, large cap value stocks outperformed large cap growth stocks.
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