5 Value Stocks That Will Make You Richer in 2020
In 2016, Bank of America/Merrill Lynch released an intriguing report that examined the average long-term returns of growth stocks and value stocks between 1926 and 2016. What the report found was that, while both groups of stocks proved excellent over the long run, value stocks held the edge, with an average annual return of 17% (versus 12.6% for growth stocks) over this 90-year period.
Since the Great Recession, we've seen growth stocks handily outperform, which has a lot to do with the Federal Reserve keeping interest rates below their historic norm. Having abundant access to cheap capital has allowed high-growth businesses the opportunity to borrow and expand.
But things could change in 2020, especially with Wall Street and investors on heightened recession watch. This could bring value stocks back into focus for the first time in about a decade. This is why I expect the following five value stocks to make investors richer in 2020.
Source Fool.com
