Why Are Value Stocks Considered Safe Bet When Markets Reach Peak

Investing in value stocks is considered safer as they reflect relatively low volatility and experts advise beginners to focus on them to develop their understanding of the market

Investing in a bullish market is tricky as investors risk being easily lured by the promise of making quick money. While most stocks gain in value when the market inches towards an all-time high, experienced investors hunt for “value stocks” to put their money into. Since October last year, value stocks have been gaining a lot of traction and outperforming the growth stocks. Investing in value stocks is considered safer as they reflect relatively low volatility and experts advise beginners to focus on them to develop their understanding of the market. What Are Value Stocks? When investors try to cut their exposure but still want to remain invested, they try to identify stocks that are trading for less than their intrinsic or real value. These are stocks that investors basically believe are being undervalued. They are called value stocks. American economist and investor Benjamin Graham pioneered the method of ‘Value Investing' in the 1920s. And his method rings true to investors till date, with notable followers such as Warren Buffet and Peter Lynch. How Value Investing Is Done?