Buying Stocks For 2015 With The Market At New Highs

There’s nothing like screening the market for cheap stocks on a a daily basis to put you in close touch with the state of equity valuations. Since July 2012 as editor of Forbes Dividend Investor, I’ve been scouring the market for stocks trading at discounts to average valuations over the past three- and five-year periods. Perhaps unsurprisingly, the universe of stocks that look cheap based on this methodology has shrunk since 2012, and many of the stocks that do look cheap seem to be cheap for a reason, whether they’re in the depressed energy sector or struggling companies in emerging markets like Brazil or Russia.

What’s interesting is that neither growth nor value investing styles are working any better than the other, with the Russell 3000 Growth (IWZ) and the Russell 3000 Value (IWW) ETFs performing neck-and-neck over the past year. In terms of market capitalization, you see what you usually do in later stages of an aging bull market with large caps leading by a wide margin over small caps. The SPDR S&P 500 (SPY) is u 15% in the past year, compared to a 5% gain for the Russell 2000 (IWM) ETF. [Y]ou may be looking ahead to next year to find stocks that will be worth owning in 2015. That was the task ahead of me and five other Forbes investment newsletter editors who put together recommendations for 15 stocks poised for gains in the year ahead. Among my picks are breakfast cereal giant, Kellogg K +0.47% (K), as well as Canada’s biggest telecom company, Rogers Communications (RCI) and regional bank FirstMerit (FMER).

Source: Forbes

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