In the latest edition of Yahoo Finance’s Good Buy or Goodbye, Julie Hyman is joined by Interactive Brokers Chief Strategist Steve Sosnick to weigh the benefits of choosing to invest in value stocks over growth stocks, outlined by thematic performances seen in 2023.
“The Russell 1,000 value, which is what [the Vanguard Russell 1000 Value Index Fund ETF (VONV)] is based on, has a [price] of about 15… almost 16… so it’s really not very expensive,” Sosnick says on a value stock portfolio. “There is not a lot of downside from that regard. and the expectations for earnings are relatively modest. Call it about 5% is what that forward PE implies.”
Alternatively, Sosnik looks to the Vanguard Russell 1000 Growth Index Fund ETF (VONG), believing stocks displaying continuous growth may be weighed down by economic headwinds.
“If everybody owns it, who is left to buy it? When you think about what has gone on, a lot of what we have seen in all markets, in almost every asset class, a year end phenomenon, if you’re an institutional investment manager, FOMO is a real thing — it’s fear, if you’re an individual, don’t succumb to FOMO,” Sosnik says.
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Damn
👍I’m hoping to retire next year at 55. My goal next year is to be more serious and consistent with my investments I’ve been investing since I was 22. 2024 is going to be more serous for me investing consistently for the long term. starting to save for a house down payment. I want to invest more than $105k, but I’m not sure on how to mitigate risk
Yes I Agree, I’ve been talking to Alex L Orloff for long now, mostly because I lack the knowledge and energy to deal with these ongoing market circumstances. there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring
Wow I know ALEX . His platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not he outperforms i will always stay invested as his methods alone with keeping investors in touch with their strategies and outlooks are something that so few managers are capable of and they should follow suit.
Run a quick online research with his name.
his website should appear right away
2 year horizon in a bear market come on.. Cherry picking much. Okay lets look at 5 year. Value: 47% gain Growth: 130% gain EDIT: 1 Year stats: Value: 9% Growth 42%
Value tends to outperform growth over the long run, but they do take turns outperforming each other, so you could interpret this long period of lagging performance as a buying opportunity