By Vitaliy Katsenelson CFA
***
***
The stock market bubble that I’ve been writing about for the last few years is finally bursting. For the first time in almost a decade, it feels like common sense has stopped being a painful headwind and is turning into a tailwind.
Paying any price for the stocks of companies that were growing revenues but had no hint of profitability and were diluting shareholders by giving away 10% of shares in stock-based compensation every year is an approach that has stopped working.
Investors are discovering that the price you pay matters, eventually. Many of these companies are down 70-80% from their highs and are still expensive.
Rising interest rates are making value investing great again!
***
COMMENTS APPRECIATED
Thank You
***
***
Filed under: "Ask-an-Advisor", Experts Invited, Financial Planning, Investing | Tagged: value, value investing, Vitaliy Katsenelson CFA |
Leave a Reply