How has the market wobble affected stock market value

9 min Read Published: 29 Jun 2018

You may recall from the FREE email series you received when you first engaged with 80-20 Investor that one of the investment strategies, other than momentum investing, proven to work is value investing. So periodically I look at which global stock markets offer good value based on historical data. Since the last time we looked at stock market value, there has been a correction in most developed stock markets while some emerging markets have entered a bear market. So how has this affected their 'value'? But first, let me recap on what value investing is.

What is 'value investing'

A value investor buys shares in companies that he/she believes are undervalued (that's why it's called value investing) by the market on the assumption that when reality catches up with the company fundamentals the share price will be revalued and they will make a profit.

To find value involves scrutinizing company balance sheets and accounts looking for the value that others can’t see, the earning potential that your peers are overlooking.

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