Image: Pexel
Image: Pexel
It focuses on identifying stocks that are trading below their intrinsic value. Investors seek bargains, believing that the market will eventually recognise the company's worth, leading to price appreciation.
Image: Pexel
It is based on the idea that stocks that have performed well in the recent past are likely to continue doing so.
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Value investors rely heavily on fundamental analysis, looking at earning, revenue, debt level, while Momentum investing, however, leans more towards technical indicators.
Image: Pexel
Value investors typically adopt a long-term approach, holding stocks for several years.
Image: Pexel
Momentum investors, on the other hand, usually look for shorter-term gains, capitalising on current market trends. They're quicker to buy and sell bsed on market dynamics, aiming to benefit from price shifts.
Image: Pexel
Value investing tends to outperform in market downturns, as undervalued stocks are seen as safer. Momentum strategies often excel during strong bull markets, as trends gain steam.
Image: Pexel
Value investing carries the risk that a stock may remain undervalued or take time to realise its potential. Momentum investing risks arise from sudden reversals, where a stock's trend might abruptly change direction.
Image: Pexel
Value investing may suit conservative investors who are willing to wait for returns, while momentum investing can attact aggressive investors looking to benefit from market trends.
Image: Pexel
Experts often recomended a balanced portfolio approach, combining both value and momentum investments.
Image: Pexel
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