The benchmark indices extended their losses on Thursday, with the S&P 500 inching closer to the bear market. The S&P 500 fell 0.58%, the Dow Jones Industrial Average slumped 0.75%, while the tech-heavy Nasdaq Composite declined 0.26%. Greg Bassuk, CEO at AXS Investments, predicts more volatility for the stock market for the second quarter.
Amid the rapid market sell-off, value stocks seem to be providing shelter to investors. In a value investing strategy, traders generally invest in the shares of companies trading cheap versus expensive groups. Growth investing has dominated for some time on the back of government stimulus. However, the tide seems to be turning. Vanguard expects the U.S. value stocks to deliver an annualized return of 4.1% over the next 10 years compared to 0.1% for the U.S. growth stocks.
