When investing in emerging markets, which is more important: Value or Growth?
Valuation begins and ends with profits. Just about everybody agrees with that. The faster a company’s earnings grow and the more reliable they are, the more investors will pay for its stock.
When it comes to strategy, though, Wall Street is decidedly less single-minded. Everybody wants to buy low and sell high. But how low is low and how high is high?
Generally, the Street is torn between two camps: Growth and Value. Growth investors believe in buying stocks with above-average earnings growth no matter what the price. Value investors look exclusively for “bargains,” or stocks that are trading at a discount to their usual valuation.
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