Bear Markets Reveal Value — but Watch Out for Traps!

There’s a trick to finding real value as stocks decline. [Turn Your Images On] Stock Power Ratings [Bear Markets Reveal Value — but Watch Out for Traps!]( [Turn Your Images On] [Adam O'Dell, Chief Investment Strategist]( Bear markets aren’t fun. It’s excruciating to watch your account’s value decline month after month. But they do serve a purpose. In a broad market decline, value starts to reveal itself. Companies that were too expensive during the boom times may start to trade at attractive prices again. Let’s talk about that. Value is one of the six primary factors that make up my proprietary Stock Power Ratings system. The others are momentum, size, volatility, growth and quality. The rationale for value investing is about as simple and straightforward as it gets. You aim to buy a stock for less than its intrinsic value and sell it for a profit later at a fair price. There are just two problems: - We don’t have a universal definition of “value.” -  Some stocks are cheap for a reason. [But my Stock Power Ratings system can help with that.]( Suggested Stories: [When the Everything Bubble Becomes the Everything Bust]( [It’s Been a Minute Since Bonds Looked This Good — Short-Term Strategy]( --------------------------------------------------------------- FROM OUR PARTNERS [Could This Be Desperate Biden's "Shock" to America? (December 14)]( Biden's poll numbers are embarrassingly low. Historically, that makes him a dangerous president — looking to "shock" his way to reelection. He could make his final push thanks to a closed-door meeting on December 14. If you own stocks or gold ... or are remotely concerned about the American economy... [Check out my full prediction here.]( --------------------------------------------------------------- Chart of the Day [Strong Dollar Reveals Imminent Crisis in Global Economy]( [Turn Your Images On] [Amber Hestla, Senior Analyst, True Options Masters]( Many things take the blame for global financial crises. But there tends to be one underlying cause. Federal Reserve policy is almost always the reason other nations suffer crises. The Mexican peso crisis in 1994 followed this familiar pattern. The Fed started raising rates in late 1993. In November 1994, the Fed raised rates 0.75%. This was an out-of-character move for then-Chair Alan Greenspan, who favored 0.25% rate changes. The peso fell 50% one month later. Inflation soared. U.S. officials organized a $50 billion bailout package by January to stabilize the peso. [Today’s chart shows what the Fed’s latest hike means.]( [Turn Your Images On]( [(Click here to view larger image.)]( Suggested Stories: [Read Between the Headlines: Details Hidden in Rent Drop News]( [The Surprising Winner of the Inflation Reduction Act]( --------------------------------------------------------------- [Tired of High Gas Prices? Here’s What to Do…]( Inflation is driving the price of everything through the roof. Gas, groceries … you name it. But one investment not only combats inflation, it can be a hedge against rising interest rates and market volatility. Billionaires are already pocketing hundreds of millions of dollars from it, but most Main Street investors are missing out. Don’t be one of them! [Click here for all the details (PLUS a FREE offer).]( --------------------------------------------------------------- [Turn Your Images On] 1955: James Dean, the American actor who became a symbol for the idealistic youth culture of the 1950s, died in a car accident at 24. His performance in East of Eden earned him the first posthumous Academy Award nomination. Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. 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