Insights

There always seem to be frightening headlines with which equity investors must contend, the Omicron variant the latest, yet the asset class historically has generated excellent long-term returns for those that remember that the secret to success in stocks is not to get scared out of them. Easier said than done, we know, especially with the talking heads on financial television and editors of business publications competing 24/7 for attention, one day raving about the latest market rally and the next warning of impending doom.

These days, inflation and the Federal Reserve seem to be providing plenty of investor consternation. In this report, we examine the historical evidence for equity returns versus CPI rates, Fed Tapering and rising interest rate environments. We think readers will find the data eye-opening, plus we offer a dozen of our current Value stock favorites.

With the calendar about to roll past Halloween, we look forward to the start of the seasonally favorable six-month time span. While we have long thought that the only problem with market timing is getting the timing right, and we are always focused on the long-term prospects of our stocks, we do not mind that November to April is the period in which the equity markets typically perform well.

To learn more about what history has to say, and to see 12 stocks that we presently find undervalued, we encourage you to peruse our latest Special Report, The Most Wonderful Time of the Year. We hope it will bring you holiday cheer!

In this TPS Special Report, we offer 11 of the most important charts for 2022, covering top-of-mind themes such as market pullbacks, inflation, expensive valuations, volatility and rising rates.

We think the tax rate analysis is eye-opening and, as is often the case, we believe it supports an emphasis on Value stocks in one’s asset allocation mix. We like the perspective offered by Vannevar Bush, “Fear cannot be banished, but it can be calm and without panic; it can be mitigated by reason and evaluation,” and we think this quick-read report is well worth a look.

We even offer a listing of 10 undervalued stocks that are already paying an elevated tax rate, suggesting that their bottom lines might not be so heavily impacted by a hike in the corporate tax rate.

In this report, we identify a few of the most common events which have historically caused temporary market disturbances. These events could easily deter you from staying on track with your long-term investment plan. But historical data suggests that doing nothing can be the best course of action.

Whether we end up with an incumbent victory for the Republicans or a transition to a Democrat in the White House, our political platform always starts and ends with recommending a diversified portfolio of what we believe to be undervalued stocks.