Your Survival Guy

Preparing your investments and family for when disaster strikes.

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For Me Value Investing Is Always and Forever

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Value investing is coming back. But to me, it never left. Because the minute you craft a portfolio with above-average dividend yields, you’re a value player. Markets go in cycles, but what stays the same is when you’re paid a dividend, you’re being paid to invest no matter what the stock market is doing. Young Research’s Retirement Compounders is your one-stop dividend-centric stock strategy. Welcome aboard.

From The WSJ:

Value investing is coming back.

Over the past decade, growth stocks have outpaced value shares, which usually have lots of tangible assets relative to their market value. In those 10 years, the S&P 1500 Composite Growth Index has an annualized total return of 16.4% through March 31, compared with 14.4% for the overall S&P 1500 and 11.9% for the S&P 1500 Composite Value Index, according to S&P Dow Jones Indices.

“U.S. markets are inherently biased toward growth, with a heavy emphasis on technology stocks,” says Matthew Krajna, co-chief investment officer at Nottingham Advisors.

Recently, though, value has been having a moment and trouncing the richly valued, highflying growth stocks. The S&P 1500 value index is down just 0.2% over the past three months, while the S&P 1500 growth index is down 8.6%. Is it sustainable? Over the past two decades, there have been a lot of false starts for value as a hyperaware Federal Reserve has kept interest rates historically low—effectively bailing out growth investors by making money cheaper. But that isn’t the case now, as the Fed has begun raising rates.

Action Line: If you need help building a portfolio of value-focused, dividend-paying stocks and interest-paying bonds, I would love to talk with you. Email me here.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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