Cheap Stocks: Better In A Bear, Better In A Bull
It pays to be cheap…in almost every market.
The latest data from 2022 confirms it.
If you want to make more money in stocks and suffer fewer setback losses, cheap is the way to go.
Case in point - in one of the worst markets in over a decade, the world’s cheapest stocks were rare bright spots.
If they did well in a bad market, they could do even better in an average market.
Here’s the best places to find cheap stocks now.
It Pays To Be Cheap
Last year was dominated by major trends.
Tech was destroyed.
Commodities emerged as a pocket of strength.
And, according to data below, value really showed through.
Value stocks were and are set to continue to be the best spot for safety and growth.
Now, Shareholder Intel readers are already well-versed on the immense value in international stocks right now.
Last year we saw how well this value became, well, valuable.
And we recently came across a chart that really drives this point home.
The chart below was featured in 10 Predictions For 2023 from the Irrelevant Investor.
It shows the real value in value:
The chart shows the relative performance of the S&P 500 compared to many other markets around the world.
The chart shows total returns in both local currency (red) and U.S. dollar (grey).
There were two noticeable pockets of relative strength – Brazil and Mexico.
Brazil was actually about break even despite the strength of the U.S. dollar.
Mexico wasn’t far behind. It was down just a couple of percentage points in U.S. dollar terms.
This is a trend poised to continue well into the future as international stocks offer up to 13X better potential returns.
The chart showed two emerging markets were the best bet in a bear market.
Both Mexico and Brazil held up in a tough market.
You’ll see the same trend across many other emerging markets.
Just imagine how well they can do in a better market.
If it pays to be cheap, emerging markets stocks are one of the best bets to make today.
