FYI: Growth has beaten value in the stock market for many years.
But if you are feeling uncertain about the market — the trade standoff, Brexit, the health of the European Union, the threat of a recession and years of unprecedented stimulus by central banks — it may be time for you to diversify or consider a value-oriented strategy.
Diversification is not difficult. You can easily lower risk with an equal-weighted index fund or by selecting a value-oriented index fund.
There was a flurry of articles in the past week saying investors were reallocating to value strategies. Those articles were based on daily trading activity, which doesn’t mean much to long-term investors. But it’s a good time to assess the risk associated with index funds that are heavily weighted toward large, rapidly growing tech companies, and to look at how value stocks have performed through long periods.
Regards,
Ted
https://www.marketwatch.com/story/worried-about-the-stock-market-here-are-easy-ways-to-cut-risk-2019-09-14/print
