I’m usually an “ALL IN VTSAX” type of guy. This year, I’m going to try some value investing. It appears that bank stocks are below their averages, as are European stocks. Retail also looks undervalued (Walgreens and Macys especially). What are your thoughts?
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My thoughts are buy low and sell high.
I would stick with the index unless you have special skills or knowledge of bank stocks, pharmacies, etc. Just my opinion though
What metric are you using to arrive at “below their averages”? I checked a few bank stocks and they’re near record highs.
Don’t know about Walgreens, but Macy’s may be following Sears into history books (just without the obviously fraudulent self-dealing).
Alternately, sell high then buy low!
I believe international stocks are undervalued. Looking at the 10 year average, certainly the risk going forward is lower vs. historical levels. It’s not a guarantee or it would be arbitraged away, but if you ever wanted to put a portion of your portfolio to international but never had, the relative risk is lower right now.