How to buy cheap stocks with strong earnings: Goldman Sachs strategy - Business Insider

which bets on the best-performing stocks and wagers against the worst performers suffered its worst single-day decline on September 9, according to Bloomberg data.

Value stocks have lagged so far behind growth that the gap between high-multiple and low-multiple stocks is the widest since the tech bubble, Goldman Sachs research shows.The first part of Goldman's answer is that the existing gulf should not be used as a timing tool. In other words, value stocks are not more attractive because they are extremely cheap, and growth stocks are not undesirable because of their high multiples.

According to Kostin, this Goldilocks category is ideal now because the hypothetical conditions needed to drive value's outperformance simply aren't present. He narrowed these conditions down to two scenarios: a strong or improving economy that would encourage risk-taking in cheaply valued stocks, and a weak economy that would benefit underowned stocks relative to their more expensive peers.

"Accordingly, we recommend investors focus on stocks with Growth at a Reasonable Price , strong growth but without the extreme valuations carried by many secular growth stocks."Russell 1000

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

These are the energy stocks to buy ahead of 2020, says GoldmanGoldman Sachs says that EOG Resources, Pioneer Natural Resouces and Parsely Energy are well-positioned heading into 2020.
Source: CNBC - 🏆 12. / 72 Read more »

Retail sector investing, stock-picking advice from top-ranked manager - Business InsiderThe No. 3 fund manager of 2019 is betting big on a corner of the market he thinks can survive the retail apocalypse, regardless of outcome. Here are the 2 stocks he's using to take advantage.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Emerging market stocks were laggards in the past decadeDespite a strong start to this decade in 2010, emerging market stocks underperfo... low beta? Hmm اگر تولید کننده داخلی کیفیت را حفظ کند تمام ایرانیان از محصولات داخلی استفاده می کنند . و همه انها باید یک مرکز تحقق و توسعه در حد خودشان داشته باشند
Source: Reuters - 🏆 2. / 97 Read more »

These are the digital health predictions we got right in 2019 - Business InsiderBusiness Insider Intelligence takes a look back on our 2019 digital health predictions and highlight which of our forecasts rang true.
Source: BusinessInsider - 🏆 729. / 51 Read more »

The SEC is investigating whether BMW manipulated sales figures - Business Insider'We can confirm that we have been contacted by the SEC and will cooperate fully with their investigation,' a BMW spokesperson told Business Insider.
Source: BusinessInsider - 🏆 729. / 51 Read more »