20 Best Investing Podcasts for Beginners on Spotify

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In this article, we will take a look at the 20 best investing podcasts for beginners on Spotify. If you want to skip our detailed analysis, you can go directly to 5 Best Investing Podcasts for Beginners on Spotify.

Economic Turmoil: Value Stocks vs Growth Stocks

On May 30, Putnam Investments published a comprehensive analysis on whether a growth or value investment strategy works well in a recession. With uncertainty surrounding the global economic outlook, investors may be divided on whether to invest in growth stocks or value stocks. 

Data cited by the report suggests that, historically, as per the Russell 1000 Growth and Russell 1000 Value indices, growth stocks have outperformed value stocks during economic slowdowns. The report offers a few explanations for the phenomenon. Only a few companies can grow their earnings during an economic slowdown compared to an economic boom. The report mentions that there are many innovative companies that engage in the production and sales of commodities that are not directly impacted by economic cycles.

However, this does not mean value stocks are a big no for investors during a recession. While the growth index median may be higher than the value index median, value stocks may provide strong returns to investors in the long run. According to the report, the Fama and French factor model infers that companies reporting strong and stable earnings are more likely to generate higher returns.

According to the report which tracked the recessions of 1980, 1982, 1991, 2001, and 2009, growth has outperformed value 12 months prior to a recession. However, value has outperformed growth after the economy exits a recession. The report concludes by emphasizing that investors must effectively diversify their portfolios by having exposure to both growth stocks and value stocks.

Notable Stocks with Favorable Long Term Conditions

Striking a balance between growth stocks and value stocks would be the appropriate course of action during economic turmoil. Before investing, investors are urged to make wise choices by prioritizing the quality of the stocks they are investing in. With that, let's dive into some of the top value stocks that are seeing increased institutional capital and are on analysts' watchlists. These include Occidental Petroleum Corporation (NYSE:OXY), HCA Healthcare, Inc. (NYSE:HCA), and Public Storage (NYSE:PSA). 

Occidental Petroleum Corporation (NYSE:OXY) is a hydrocarbon exploration company based in the United States. On October 3, Occidental Petroleum Corporation (NYSE:OXY) reported that the company is set to conduct a preliminary study in the UAE. Occidental Petroleum's subsidiary, 1PointFive, and Adnoc signed an agreement to conduct the study for a 1-million-tonne per year Direct Air Capture (DAC) facility in the UAE. The study will be able to assess the feasibility of a huge DAC facility outside of the United States, using the same technology used in the plant under construction in Ector County, Texas. Such explains why Occidental Petroleum Corporation (NYSE:OXY) may be an attractive option to investors. As of October 21, Occidental Petroleum Corporation (NYSE:OXY) is trading at a compelling price-to-earnings ratio of 11.01.