These 3 Value Stocks Keep Going Higher as the Market Goes Lower
It's been a volatile year for investors. Over the last 12 months, the S&P 500 has risen as much as 17% and is currently down about 5.4%. Since hitting all-time highs in early January, the index is down about 19.3%.
Growth stocks especially have taken a big hit, with the Vanguard Growth ETF down 12.4% over one year. Value stocks have held up better, with the Vanguard Value ETF down about 2.1% over the same time frame.
Value stocks tend to be slower-growing companies with steady cash flows and can hold up better as the Federal Reserve raises interest rates to get inflation under control. When valuing stocks using the discounted cash flow method, growth stocks are more negatively impacted by rising interest rates than their value counterparts.
Source Fool.com
