Hidden Value is on The Rise in Equity Markets

I've written quite a bit that stock picking is back. That active management of undiscovered names can finally lead to alpha again. I think we are seeing that take place with the recent performance of value stocks compared to the leading indexes.

While the Nasdaq has dropped nearly 2% this year at its worst during the most recent drawdown, the Vanguard Value ETF (VTV) is up 5%. This seems rather fascinating and I don't remember when a basket of good ol fashioned value stocks were outperforming the index like this.

It's been a long time!

Buffett’s wisdom holds strong: “Price is what you pay. Value is what you get.” With tax cuts and a business-friendly environment ahead, could value stocks finally go on the offensive?

History favors those who buy durable businesses at reasonable prices. The market wobbles, but for patient investors, cash flow remains king and this is true across all sectors and industries. Perhaps most fascinating is that there are indeed even tech names that fit this value narrative as many have been obliterated recently.

Keep your eyes open!

I'll be watching closely.