Value investing will help you survive market uncertainty
Change is inevitable and necessary part of life and when it comes to the stock market, change is also the most important event. In 2017, the buzzwords were budget, bull run and all-time highs, while now its uncertainty, elections, trade-war, etc.
Earlier, the investment idea was to pick a stock and book profit, everything looked very simple. But times have changed and here we are facing many issues that are undecided and unclear including liquidity crunch, election cues, macroeconomic data, trade war and Brexit.
Indian stock markets saw a long bull run till September 2019 which almost changed the investing philosophy and long-term investing. But this is where many investors are still stuck with the market taking a u-turn from the top. We believe that this is the time for value investing and value picking.
Value investing is best to sustain the bumpy ride of the market and invest for returns that are created by long-run and remain for the long-run. The value picking can be done by filtering stocks for factors such as size, consistency, liquidity, valuation and growth. The uncertainty in the markets have historically ended up giving good returns. This might be the right time to invest for the long-run and value investing.