History Says Value Stocks Could Soar This Year. Here Are 2 Stocks to Buy.
There's a place for stocks trading at low valuations (generally referred to as value stocks) in a well-rounded investment strategy. History shows that the relative performance between value and growth stocks can sometimes move back and forth like a game of tug of war.
But the underperformance of either group has never been this lopsided. Research from Patient Capital Management found that, between 2007 and 2020, value stocks underperformed growth stocks by 150% -- the worst performance by either group in the last 50 years.
While growth stocks generally are the best way to grow your savings over the long term, identifying stocks trading at low valuations or price-to-earnings (P/E) ratios can be beneficial when the markets turn volatile.
Source Fool.com
