Leaving growth? Don’t get caught by value traps when value investing

You might have noticed recent downward pressure on equity markets. One step further, you may have picked up on the downright obliteration of many riskier growth shares, such as the technology sector.

The S&P/ASX All Technology Index (ASX: XTX) has fallen over 13% in the last month. No doubt interest is increasing in the classic Ben Graham/Warren Buffett ‘value investing‘ approach.

Due to bond yields rising (which if you’re interested in that – have a look at this article), the market is beginning to make the cyclical shift into value. The reason partly being high risk just isn’t as appealing in a high-interest rate environment.

A word of warning – This is often when investors give up potential high growth investments…