Bear markets aren’t fun. It’s excruciating to watch your account’s value decline month after month.
But they do serve a purpose.
In a broad market decline, value starts to reveal itself. Companies that were too expensive during the boom times may start to trade at attractive prices again.
Let’s talk about that.
Value is one of the six primary factors that make up my proprietary Stock Power Ratings system. The others are momentum, size, volatility, growth and quality.
The rationale for value investing is about as simple and straightforward as it gets. You aim to buy a stock for less than its intrinsic value and sell it for a profit later at a fair price.
There are just two problems: - We don’t have a universal definition of “value.”
- Some stocks are cheap for a reason.
But my Stock Power Ratings system can help with that. Suggested Stories: When the Everything Bubble Becomes the Everything Bust
It’s Been a Minute Since Bonds Looked This Good — Short-Term Strategy Biden's poll numbers are embarrassingly low. Historically, that makes him a dangerous president — looking to "shock" his way to reelection.
He could make his final push thanks to a closed-door meeting on December 14. If you own stocks or gold ... or are remotely concerned about the American economy... | | Chart of the Day Many things take the blame for global financial crises.
But there tends to be one underlying cause.
Federal Reserve policy is almost always the reason other nations suffer crises.
The Mexican peso crisis in 1994 followed this familiar pattern.
The Fed started raising rates in late 1993.
In November 1994, the Fed raised rates 0.75%. This was an out-of-character move for then-Chair Alan Greenspan, who favored 0.25% rate changes.
The peso fell 50% one month later.
Inflation soared.
U.S. officials organized a $50 billion bailout package by January to stabilize the peso.
Today’s chart shows what the Fed’s latest hike means. (Click here to view larger image.) Suggested Stories: Read Between the Headlines: Details Hidden in Rent Drop News
The Surprising Winner of the Inflation Reduction Act Inflation is driving the price of everything through the roof. Gas, groceries … you name it. But one investment not only combats inflation, it can be a hedge against rising interest rates and market volatility. Billionaires are already pocketing hundreds of millions of dollars from it, but most Main Street investors are missing out. Don’t be one of them! | | 1955: James Dean, the American actor who became a symbol for the idealistic youth culture of the 1950s, died in a car accident at 24. His performance in East of Eden earned him the first posthumous Academy Award nomination. | Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: https://moneyandmarkets.com/contact-us/ Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2022 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: Click here to Unsubscribe | | | | | | | |
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