These conditions aren’t favorable for the stock market, and they’re especially bad for growth stocks with high valuations. Investors are moving away from expensive stocks that had extremely high growth rates assumed in their price. Value stocks, which were left in the dust over the past two years, suddenly look much better for investors who are looking for safe places. Dividend yields are more valuable now that volatility is dominating short-term returns.
All of the forces that supported value stocks in January are still in play right now. Growth-stock valuations aren’t so extreme anymore, but the market is still relatively expensive overall. Value stocks might be dragged down as the market sinks in general, but they still offer more opportunity with less risk for the time being.
10 stocks we like better than Walmart
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn’t one of them! That’s right — they think these 10 stocks are even better buys.