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Very few left: Will value investing ever make a comeback?
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Is Value Investing Dead?

I wouldn't say that value investing or growth investing are dead. Generally speaking in a bear market most equities will lose value. Even the value companies that supposedly hold their value in turbulent times. If you are speaking of value or growth investing in tech companies, which is what most consider to be growth companies, then obviously growth, value, and just about any other investment strategy is surely dead. But there is always a rally somewhere in the market. You just need to find it. Of all of the major sectors in the S&P 500 the only ones that are green year to date are those related to the energy sector. $Energy Select Sector SPDR Fund(XLE.US)$ and $SPDR S&P Oil & Gas Exploration & Production ETF(XOP.US)$. This is where you will find the bull market.
Is Value Investing Dead?
There are many value companies within these sector ETFs that have been performing much better than most other equities in this bear market. The value investing strategy worked very well this year if you were to rotate your capital into these sectors and its value companies.
Is Value Investing Dead?
Is Value Investing Dead?
It should also be mentioned that the growth investment strategy worked very well within these sectors as well. There are several growth and value companies related to oil, as well as other commodities, that have performed amazingly so far this year. Many of these small companies are experiencing record profits with the current sky high commodities prices. Some of these companies have gone from mere penny stock into investable equities.
Is Value Investing Dead?
For the long-term investor value investing is surely not dead. Neither is the growth investment strategy. But small adjustment to the strategy need to be made to the strategy in order to stay profitable. For example rotating your capital out of a bearish sector and into the rallying sectors. This time around it was the commodities related sectors and especially the oil and energy related sectors. Essentially you could have picked just about any equity or ETF related to these industries. For example this equal weighted ETF $Rydex Exchange Traded Fd Trust Guggenheim S&P 500 Equal Weight Energy(RYE.US)$ which has greatly outperformed the major indices this year.
Is Value Investing Dead?
The current market dynamics will not last forever. When the dot.com bubble popped the market fell for over three years before turning around. Tech were some of the worst performers during that era just like what is happening today. When the market finally turned around the worst performers, like tech, became the best performers. It is a very similar situation as the bear market rallies that have transpired recently. Tech companies were the outperformers to the upside in a very big way during the recent bear market rallies. But they are generally the worst performers in this bear market. I believe Tech will come back to be the outperformers to the upside once again when all of the current macro economic and geopolitical crisis subside and the bear market turns around. When that happens then you want to invest into tech related ETFs like $Invesco QQQ Trust(QQQ.US)$ $Spdr Series Trust Spdr S&P Semiconductor Etf(XSD.US)$ $iShares Semiconductor ETF(SOXX.US)$. You could also gain some extra exposure with some leveraged tech ETFs like $ProShares UltraPro QQQ ETF(TQQQ.US)$ $Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US)$.
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  • W Chiang : Generally speaking value investing isn't dead but just different people receive the value differently.

  • SpyderCallOP W Chiang: agreed

  • W Chiang SpyderCallOP: perhaps long term and short term also have difference. The valuation can be complex and also related to the personal goal and definition

  • jigsaw : I don't understand the methods and cyclical nature of value investing. It's not about putting it there to die and wait. There is a specific set of methods and methods, and you need to know when to take profits

  • Dons Son : Thanks Spyder

  • BL 88 : Value investment in China simply meant invest in Stocks that Xi JinPing VALUE......and the answer is....NO Stocks! Fxxk Xi JinPing

  • SpyderCallOP jigsaw: the value companies in the technology sector or the big outperformance for the past 10 to 12 years. now that we are in a high interest rate and high inflationary environment the value companies in the technology sector are not performing good at all. they are actually in a downtrend for the past 9 months almost. but the value companies in the energy sector which were performing very bad over the past 10 to 12 years are now performing extremely well in this High inflationary and high interest rate environment. basically you want to rotate some of your Capital into the value companies in the rallying Industries. like the big oil companies are really good value companies like chevron, exxon, Valero, Phillips 66, ConocoPhillips, Etc. and whenever you see the trends changing then you want to rotate your capital again into the sectors or industries that start to Trend up. for example if oil prices start to drop off of a cliff and inflation starts coming down then we might see these oil companies share prices drop. at that point we would want to take some Capital out of the value companies in the oil sector and then rotate that Capital into the sectors that are trending upwards

  • SpyderCallOP Dons Son: of course. no problem Thumbs UpOK

  • Dons Son SpyderCallOP: What are the best dividend companies in your opinion Spyder

  • Dons Son Dons Son: Right now and long yerm

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