History-Making Value Stocks

As promised, we share more of your opinions on SRO Scot Peterson:

“Sorry excuse for an officer,” says our first contributor. “I think [he] is just as guilty as the shooter.”

A reader from Texas seconds that…

“There’s no doubt he’s guilty on all charges — and more. Perhaps a qualification for SRO should be ex-combat marine who are known to run towards the sound of gunfire instead of away from it.”

And this dissenting opinion:

“I don’t agree with the charges… Prosecutors are having a field day, pressing bogus charges on anyone they can [and] settling for low-hanging fruit. They can’t finger the leaders of human trafficking so they go after Robert Kraft. It’s pathetic what prosecutors are doing.”

We take him for a Pats fan. We kid.

Last…

“[Cases like SRO Peterson’s] have gone to court before; courts conclude that police are not required to protect us. Therefore, we better arm ourselves — especially teachers.

“Remember: when seconds count, the police are only minutes away.”

We’re still chewing on that.

And that’s controversial. Armed teachers? (There’s actually precedent for that.) What’s your take?

Your Rundown for Wednesday, June 12, 2019:

True Value

At CNBC this morning, we read this headline: “Value stocks trade at a record discount, and it could mean a major summer rally.”

“Summer rally”? Intriguing. Especially in an environment where the saying is “sell in May and go away” — we’ll catch up in the fall.

First, let’s break down what a value stock is… or what it isn’t. We’re not talking expensive growth stocks that have sexy name recognition (think FANG companies).

While value stocks are certainly household names, generally, they’ve been circling Wall Street’s block for decades. Here are some of their distinguishing characteristics:

  • high dividend yield
  • low price-to-book ratio
  • low price-to-earnings ratio

Essentially, value investors are looking for stocks that are trading for less than they are fundamentally worth. Bargains, in other words. And, today, value stock are trading at the greatest discount in the market’s history.

A word of caution: Even investors who’ve made fortunes value investing have been pivoting to growth stocks.

Warren Buffett’s Berkshire Hathaway, for one, has snapped up shares of Amazon like there’s no tomorrow. And Buffett’s gone on record saying he wishes he’d bought AMZN sooner. (Don’t we all?)

So when it comes to balancing your portfolio, it might be time to take another look at diversifying with value stocks.

Market Rundown for Wed. June 12, 2019

S&P 500 futures are down 6.5 points to 2,880.50.

Oil’s lost $1.45 to $51.82 for a barrel of WTI.

Gold is up $6.70 to $1,337.90 per ounce.

Bitcoin’s gained $99.42 to $8,017.

Have a good day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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