Why Consider Shifting to Old-School Value Now?A full pivot? Not yet—the Titans' momentum (e.g., Nvidia's projected $3T market cap) suggests growth could run longer. But partial rotation makes sense for these reasons:Valuation Stretch: U.S. growth trades at premiums (e.g., high P/E ratios from AI capex), risking a pullback if earnings disappoint or rates stay "higher for longer." Value sectors like financials and energy are at historical discounts, offering a buffer.
Fed Cuts Favor Value: With rate reductions underway, high-yield value stocks (e.g., dividend aristocrats) thrive on lower borrowing costs and income stability, unlike growth's reliance on future promises.
Diversification Imperative: Titan concentration amplifies volatility—markets are "climbing a wall of worry" with U.S.-China tensions and fiscal strains looming. Value adds ballast, especially non-U.S. plays.
Momentum Shift Evidence: Large-cap value dividends are drawing flows amid all-time highs, with sector rotation accelerating in October (e.g., energy and industrials leading).
Actionable Steps:Core Value ETFs: Start with VTV (Vanguard Value) or IWD (iShares Russell 1000 Value) for broad exposure—low fees, ~3% yields.
Targeted Picks: Focus on undervalued, high-quality names trading below fair value with strong yields.
List to lookout for
Exxon Mobil (XOM)
Oil demand steady; 14% below fair value
Medtronic (MDT)
Device innovation; 20% below fair value
Merck (MRK)
Vaccine pipeline; 25% below fair value
PepsiCo (PEP)
Dividend aristocrat; 17% below fair value
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- Enid Bertha·10-24TOPXOM just keeps plodding along. Nice dividend, but not much price action until oil prices increase. Hard to make any money below $65/ barrell.LikeReport
- Venus Reade·10-24Will see an increase in dividends next quarter, most likely to $1.00 per quarter, got to keep that consecutive streak goingLikeReport
- Mkoh·10-24Yeap good to have a hedge other than the tech playsLikeReport
- breezzi·10-24Great insightsLikeReport