• Energy and Income Advisor
  • Conrads Utility Investor
  • Capitalist Times
  • Twitter
  • Seeking Alpha

Investment Strategy

Buying the Hiccups

By Peter Staas, on Nov. 22, 2017

With the long-running bull market showing no signs of tiring and the S&P 500 shrugging off geopolitical tensions and policy uncertainty, momentum rules the day and value-seeking investors must dig deep to uncover legitimate opportunities.

In this environment, some might be inclined to close their eyes, plug their noses, and wander out on a limb to find a bargain. Unfortunately, many stocks are cheap for a reason; valuation alone doesn’t make an investment thesis.

But value investors shouldn’t abandon all hope in the latter stages of a bull market. Elevated valuations raise the bar of expectations, increasing the risk of disappointment—and traders sitting on big profits in a stock are more likely to sell first and ask questions later.

The market’s overreaction to earnings-related hiccups can create buying opportunities for nimble investors who have the conviction, and the attention span, to look beyond the most recent quarter.

Big REIT on Campus

Ready to discover your investing potential?
Try Capitalist Times Premium Risk-Free Today

PREMIUM PORTFOLIOS

  • WEALTH BUILDERS

    A balanced portfolio of Elliott Gue’s top stocks for capital appreciation.

  • LIFELONG INCOME

    Roger Conrad’s top stocks for investors seeking reliable income.

INVESTING EXPERTS