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Alternative Market Briefing

There may be opportunity in value stocks right now

Thursday, July 25, 2024

B. G., Opalesque Geneva:

The recent article "Global Value Stocks - The Compelling Case at Midyear" from Franklin Mutual Series outlines a positive outlook for value stocks in the global economy. Others believe there are indeed some good cheap stocks out there.

A value stock is a class of stock that the market perceives as being cheap in comparison to its intrinsic worth. They tend to do well in an economic recovery. Investors such as Benjamin Graham and Warren Buffett did or do invest in value stocks.

Franklin Templeton lists several factors that support the positive outlook, which include robust economic growth, stabilizing inflation, strong employment, and significant structural trends like reshoring, infrastructure investment, and electrification:

1. Economic Strength: The global economy is growing steadily, with fears of a recession receding as economic expansion continues. The easing of credit card delinquencies in the U.S. and other signs suggest improving economic conditions. The International Monetary Fund projects global growth to stay around 3.2% this year and next, supporting consumer spending and tight labour mark......................

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