Stock Power Daily: March 17, 2023. [Turn Your Images On] [2 Big Stock Power Daily Winners (and 1 Huge Loser We Dodged)]( [Turn Your Images On]
[Matt Clark,
Research Analyst]( Market volatility is back in a big way. With the financial sector up in arms after Silicon Valley Bank’s rout, twitchy investors are reacting to any news on regional banks and the Federal Reserve’s response. It’s created a market that is up big one day and crashing hard the next. And that’s not even accounting for the broader bear market that we’ve been in for more than a year now. This is where it pays (literally) to have a system that serves as a guiding light. Our proprietary Stock Power Ratings system cuts through all of the noise of market headlines to pinpoint the best investments ⦠and those you should stay away from. I use this system every day. It’s at the core of my Stock Power Daily research. And today, I’m going to highlight some of the stocks I’ve talked about in the last year to show you that it works. Our System Found Market-Crushing Stocks When looking for stocks to recommend, I want to see three things: - A strong overall Stock Power Ratings score. - A confirmed uptrend, aka momentum. - A stock that rates well on our three fundamental factors (value, quality and growth). I believe this provides the best of the best when it comes to potential investments. Let’s look at two of stocks that checked those boxes when I recommended them and have crushed the market, despite broader volatility. I’ll also show you one company that I raised the red flag on before it tanked more than 80%! [Click here to read onâ¦]( --------------------------------------------------------------- [Turn Your Images On]( From our Partners at The Oxford Club. [Could This Stock Under $5 Be Your Biggest Opportunity?]( Investors aren't supposed to know about this [secret stock under $5](... It could become the cornerstone of your retirement. But what if this turns out to be your biggest opportunity? How long will you stay in the dark? [Click here to learn more.]( --------------------------------------------------------------- The Ugly Thing About Value [Turn Your Images On]
[Michael Carr,
Editor, The Banyan Edge]( Warren Buffett is revered by value investors. Many listen to the folksy wisdom of the Oracle of Omaha â and they like what they hear. They know he has an extraordinary track record and strive to be like him. So they try to be value investors. Not me. I understand something Buffett-wannabes don’t: I’m not him. When Goldman Sachs needed $5 billion, they didn’t call me to offer 10% interest plus billions more in upside potential. They called Buffett, and he put the deal together in minutes. Without his connections and experience, I can’t be Buffett. Instead of trying to find nuggets of wisdom in Buffett’s words, I look to Clint Eastwood to understand investing styles. He tells us there is always the good, the bad and the ugly. I’ve shared the good and the bad with you earlier this week. Now, to the ugly⦠It boils down to this: Value underperforms growth investing most of the time. And that underperformance costs investors their dreams. The chart below shows overvalued stocks, the kind that growth investors buy, performed 26 times better than value stocks. Even companies without earnings did slightly better than traditional value stocks. [Turn Your Images On] [(Click here to view larger image.)]( This chart is again based on data from Dr. Ken French. He co-authored many articles with Nobel Prize-winning economist Dr. Eugene Fama. This dataset is incredibly useful when analyzing investment factors such as growth or value. Your question might be: “If growth is so much better than value, why is value so popular?” The answer is that growth is more difficult to follow. Value investors buy stocks that appear to be cheap. That’s comfortable to do. Growth requires buying stocks that are doing well and expecting them to do better. History shows that’s the way to invest. --------------------------------------------------------------- Check Out More From Stock Power Daily: - [THE BEST WAY TO FOLLOW THE DEVELOPING EV MEGA TREND]( - [BEARISH BIG BANK SHOULDN’T COLLAPSE â BUT IT’S GOT MORE PROBLEMS]( - [A DOWNSTREAM OIL PLAY IN THE FASTEST-GROWING GLOBAL REGION]( Privacy Policy
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