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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: jttmab who wrote (34816)12/6/1999 3:05:00 PM
From: Fun-da-Mental#1  Read Replies (1) | Respond to of 99985
 
jttmab, re what happens to value stocks in a bad bear market, I've been asking myself the same question. From what I can see, they decline, but not as much as stocks that were overvalued, and when there's a turnaround they're good candidates to move up. If I knew a bad bear market was starting I wouldn't go long on any stock, but since I can never be sure, I'm invested in what seems like value to me. I think value has to be defined not just in terms of P/E and P/S, but also by the growth in earnings and sales (not past growth, but future growth). Also in a bad bear market dividends become important because they limit how low the stock can go, as long as the company is able to maintain the dividend.

Just my 2 cents worth

Fun-da-Mental