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Value Stocks —Get More for your Money

[/fusion_text][fusion_text]I really love a sale. When gas is below $2 a gallon, it brightens my day. When I buy last year’s model of anything from an iPhone to a new car, I feel better knowing that I saved money. Many of you can relate to that same joy. What you may not know is that you can get it from the stock market too.

At any given moment, there are individual companies or groups of stocks that are trading at a discount to their peers. These companies are often times ignored, unloved, or otherwise forgotten. That gives you an opportunity to pay less for your share of their profits.

A few years ago the price of oil dropped. Lower oil prices translate directly into lower earnings for most energy companies. So energy stocks went on sale. Regional banks are another example. Low interest rates and new regulations hurt their profits for years. Their stocks went on sale! Over time these conditions pass and you can earn handsome returns by repeating this process. How handsome? U.S value (low-priced) stocks have outperformed U.S. growth stocks by over 3.5% per year on average since 1926.

For more details on how this works, see our Adam Smith Insights newsletter on this topic.[/fusion_text][separator style_type=”single” top_margin=”” bottom_margin=”” sep_color=”” icon=”” width=”” class=”” id=””][fusion_text]

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. ASA gathers its data from sources it considers reliable. However, ASA makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.