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>Value stocks are exceedingly cheap, relative to their fundamentals
That's a double edged sword though. There are two reasons why stocks can be cheap relative to fundamentals, for example if you take earnings multiples. One is that the market is genuinely oversold due to a sudden panic that just dragged profitable companies down with all the rest of the stocks. That indeed presents a buying opportunity. We had that in many (European) indexes right after the Brexit vote, where the overall picture for the coming months or year was nowhere near as grim as it seemed on the day of the Brexit sell off.
The other possibility, however, is that stocks are cheap relative to current earnings because they are expensive relative to future earnings. That's a huge pitfall right there. A stock may trade at 12 times 2018 earnings at the moment, and that's a decent price earnings ratio, but if your earnings are feared to go down 40 percent in 2019, as they very well might with some stocks if the economic outlook worsens, then suddenly you have a PER for 2019 (at the current stock price) of exactly 20. And as a value investor, that's no sweet spot to get in on. It's very likely that your stock will not have seen its bottom despite a recent slump. Your stock would have to go down another 40 percent to get you the same kind of PER of 12 for 2019 as it does now for 2018.
Having said that, I think markets are at the moment pricing in that there could be a recession. But as markets often do, they tend to exaggerate the actual big picture. At the point where we are at right now, after almost an entire month of ceaseless panic selling and a whole 4th quarter of sizeable overall down movement, there is a good chance we've undershot even the grimmest worst case scenarios for 2019 and beyond. Stocks are really remarkably oversold right now, going by various technical indicators. There is at least some room for short-term speculation to the upside again.