As the overall market sell-off continues, the benchmark indexes have erased last week’s gains and slid into a bear market territory. However, this has caused the stocks of selected fundamentally sound companies to trade at heavily discounted valuations and are poised for a near-term rebound.
Furthermore, according to Vanguard Group, U.S. value stocks are projected to deliver annualized returns of 4.1% over the next 10 years. Increased investor interest in cheap value stocks is evident in the Vanguard Value ETF’s (VTV) 2.4% gains over the past month.
