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Valuation always matters, especially when other investors seem to forget the value of valuation! With stocks heating up into the tail end of the year, investors should proceed with stocks of great companies that trade at multiples that are reasonable.
Indeed, market bargains can be hard to uncover in today’s fast-moving market, with investors piling into securities with hopes of lower interest rates for the new year. Lower rates alone do not guarantee a solid year of profits. Instead of focusing on the trajectory of rates, investors should narrow in on undervalued pockets of the market so that they can fare well over the next three years and beyond.
Indeed, the longer your investing horizon, the better. But I’d say a minimum of three years is needed for Mr. Market to come to his senses with certain undervalued plays that may not be so timely.
Without further ado, let’s jump…
