Investing in Value Stocks

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Picking Value Stocks

Investing in value stocks requires that you pay attention to the market. Using stock screens to find low profit to earnings ratio stocks is useful. However, investing in value stocks also requires that you understand just how it is that a company makes its money and how it will continue to do so. Often times this requires an outside the box view of stocks and the market in order to understand how global events and other factors will tend to drive stock prices in the near and midterm future. Forbes provides an example of how to do this in their article about the top ten value stocks that they see in emerging markets.

The Energy Sector

How long will the price of oil stay down? That will be how long energy stocks will remain in the doldrums. Supply has outstripped demand and when producers cut back and the economies in China, Japan and Europe pick up steam oil prices will go up. The New York Times suggests that there is value after a plunge in the energy sector and that several hedge funds are positioning themselves to take advantage.

Investing in Value Stocks
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