How to Buy Value Stocks in 2012
Trading is about reading the tape and it's particularly been about reading the tape in 2011. This past year, traditional investing principles and the search for value has taken a back seat to amazing correlations between asset classes and sectors. There's been a stretch for yield that has buoyed the utilities, dividend mega-caps and energy MLPs. Left in their wake has been a slew of value-oriented stocks that are selling at ridiculously low multiples.
Buying value stocks has been a fool's game this year as value issues, such as Alcoa (AA), have gone from good value to great value to generationally strong value -- all while the stock price has continued to fall. Alcoa's debt levels are fine, their long-term growth story is intact and they have missed earnings expectations for valid reasons in a tumbling aluminum commodity market. Yet, they remain the worst-performing stock for 2011 in the commodity space, down 43% on the year....382 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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