Daily Brief - The bull market you don’t expect

TLDR

History rhymes, especially in markets.

At the burst of the dot.com bubble, after several years of underperformance Value stocks entered a multi-year bull market. At the end of QE, conditions might be ripe for another decade-long bull market in Value.

Remember the old Value bull market?

Value stocks were lame ducks during the dot.com bubble, underperforming Growth by a large margin. That all changed once the dot.com bubble burst. Value stocks entered a seven-year bull market that carried well into the GFC.

Then QE came and Value began losing steam once again: “once QE started, nothing that we’d been taught worked anymore. You had to buy expensive and sell cheap” said a TOGGLE user who manages money professionally.

It might be time for the pendulum to swing back in favour of Value.

Welcome the new Value bull market!

After more than a decade of underperformance, Value has started to overperform again.

Bottoming in 2021, Value has begun posting consistently positive risk-adjusted returns with limited market correlation.

Can this last?

As investors reassess what they look for in an investment security, we are possibly at the dawn of a secular bull market in Value.

Conclusion - how to buy into the Value bull market?

The S&P 500 might have entered bear market territory recently, but sections of the market had been falling for quite some time now - and some stocks have already reached secular bottom valuations.

Head to Explore and select the Value filter for US stocks, you will find 100+ opportunities with 7-star or even 8-star rankings.

Idea Spotlight: Emaar Properties

Volume analysis indicators for Emaar Properties are coming down and historically, this led to a median increase in price of 23.49% over the following 3M. TOGGLE analyzed 30 similar occasions in the past to produce the median projection and this insight received 6 out of 8 stars in our quality assessment.

Egyptian singer, Amr Diab, has teamed up with Emirati developer Emaar Properties to launch new hotel Locanda.