It takes guts to be a value investor these days. But the top-performing investment newsletters have no shortage of courage. By value, I’m referring to stocks that are out of favor, trading for relatively low ratios of price-to-earnings, book value, sales, and so forth. Value’s opposite is growth: Stocks in this latter category typically trade for high valuation ratios.
I’m not kidding when I say that value investing takes guts. According to a recent analysis from Research Affiliates, value has lagged growth now for more than 13 years — the longest stretch in recorded U.S. market history. This has led to a seemingly-endless series of pronouncements in recent years that value investing is dead.
Read: What’s happened to value stocks?
Try telling that to the top performing investment newsletters tracked by my Hulbert Financial Digest performance-auditing firm. These four stocks are tied for being the most recommended right now by those newsletters:
• Walt Disney
• JPMorgan Chase
Notice the absence of any of the so-called FAANG stocks that have been leading the market in recent weeks.
All four of these stocks are instead solidly in the “value” category: Their average trailing 12-month PE ratio, for example, is 35% lower…
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