Value stocks and inflation
Inflation presents special challenges for investors. Even if your investments are growing in value, inflation is still reducing that value on the backend. The only way to deal with it successfully is to be sure that your money's in investments that are likely to benefit from inflation while avoiding those that tend to be especially hard hit. Value stocks, on the other hand, give investors an opportunity to invest in companies that have fallen out of favor and whose stock price has dropped to bargain levels below their actual value.