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Value stocks sparkle in a new president’s first 100 days

On average, the so-called value premium is more than 10 times stronger in a president’s first 100 days than the rest of the time

Value stocks sparkle in a new president’s first 100 days
Photo: iStockphoto

If you’ve ever wanted to tilt your portfolio toward value stocks, the next 75 days may be your best chance over the next four—and maybe eight—years.

I’m referring to out-of-favour stocks that are trading for low prices relative to their companies’ underlying net worth. They are to be contrasted with issues at the opposite end of the spectrum—so-called growth stocks which are very much in favour, sporting high ratios of price to underlying value.

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