How You Can Profit As Market Shifts From Growth To Value Stocks

  • 📰 Forbes
  • ⏱ Reading Time:
  • 70 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 53%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

It’s especially critical to know how much your 401(k) account is exposed to each of these competing investment styles.

Over the last decade, growth stocks have performed significantly better than value stocks. Over the past year, however, it appears the pendulum has swung to favor value stocks and recent data suggests the trend is accelerating.reports the 5-year returns decidedly favor growth stocks. During that period, the Dow Jones US Total Stock Market Growth Index has a 12.0% average annual return. By comparison, the Dow Jones US Total Stock Market Value Index yielded an 8.8% annual return.

Popularized by Benjamin Graham, value stock investing has a long tradition. It’s perhaps best represented today by one of Graham’s most celebrated students, Warren Buffet. Value investors are taught to judge value stocks strictly on the basis of their accounting numbers—things like revenue, earnings, dividends, debt, book value and working capital.

Given that each style emphasizes different factors, you would be correct to assume different economic environments tend to favor one style over the other. As the graph below shows, this is precisely what you’ll find in the relative performance between growth and value. During the “Roaring 90s,” growth stocks, as depicted by the Vanguard Growth Index Fund Institutional Shares , dramatically outperformed its value equivalent, represented by the Vanguard Value Index Fund Institutional Shares .When the economy reversed itself in the first ten years of the new millennium, value performed much better than growth.

Investors do have to make a decision regarding where to put their money. Being herd animals, they tend to follow the crowd. When this happens—when the herd picks one style over the other—the neglected style tends to lag in performance. Still, knowing the make up of your underlying investments can help you understand where you may be headed. Just don’t let it trick you into making knee-jerk responses.

 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

Awesome. You can do it, people. You're way ahead of the market. Get off your lazy butts and open a day trading account.

move your money from china related stock to something else period.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 394. in KR

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Tech stock gains this big imply a strong 2019 stock market finishSeven times since 1990 the Nasdaq index has generated returns like this year's 20%-plus pop. In most of those years, the momentum continued for stocks in the fourth quarter with another 8% to 10% of gains. With nas100 only I will be a billionaire 😊
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »

Apple hits record high, extends market value above $1 trillionApple reportedly asked suppliers last week to boost production for its new iPhones by as much as 10%, or 8 million units. It's amazing how much money you can make when you turn a blind eye to authoritarianism and genocide hey Apple This won't last beyond December. Great for shareholders now though. You know how much $1 trillion is? It’s a million, million. For perspective, try counting to 1 million. Each number you count represents $1 million. If you don’t care to try, take my word for it... it takes a long time to count to a million. That’s a lot of money
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

Top Cannabis Companies Have Lost Almost $10 Billion In Market Value Since Vaping Crisis BeganSince vaping season began, top cannabis companies have lost $10 billion in market value by skleb1234
출처: Forbes - 🏆 394. / 53 더 많은 것을 읽으십시오 »

4 fintech leaders share the steps they took after raising funding - Business InsiderVCs invested almost $40 billion in fintech last year. 4 major leaders describe the steps they've taken to grow their businesses after being flushed with cash.
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

5 things to know before the stock market opens FridayU.S. stock futures point to a sharply higher Friday open on Wall Street, with President Trump casting a positive view on the China trade talks
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »

5 things to know before the stock market opens ThursdayU.S. stock futures go on a wild ride overnight on mixed messages ahead of Thursday's high-level China trade talks.
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »