During his recent interview with CNBC, Ariel’s Charles Bobrinskoy explained why value stocks are trading at very reasonable multiples. Here’s an excerpt from the interview:
Bobrinskoy: Well, it’s very important and it’s why we shouldn’t talk about the stock market being so overpriced.
It’s about eight or nine stocks that have rallied so dramatically and are overpriced.
The big segments of the market, the value stocks that I love are trading at very reasonable multiples. They’re at those low multiples because people have been worried about a recession.
And if we get better inflationary news, and if the Fed takes its foot off the neck of the economy, we can have a decent economy and those value cyclical stocks can do very well.
We have lots of stocks that are absolutely trading at bubble levels that people should be nervous about, but we have broad parts of this market that are trading at historically attractive rates.
Some of the names I love, industrials, financials, some energy names that are very reasonable here.
You can watch the entire discussion here:
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