Value stocks -- a market segment that includes high-yield stocks - is the place to achieve income. The recent yield on the iShares Russell 1000 Value Index ETF was 1.8%, compared to the 0.4% current yield on the iShares Russell 1000 Growth Index ETF. Growth stocks have a history of outperforming value stocks, but value has had its day. Value outperformed growth stocks in 2022. That's a recent rarity, as for more than a decade, the performance record favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 575%, compared to an advance of almost 200% for the Russell 1000 Value Index. In 10 of the past 13 years, growth stocks have topped value stocks. That hasn't always been the case. In the 2000-2010 decade, including the Great Recession, value stocks were better performers than growth stocks, advancing an admittedly low 8% (but still better than growth, which declined 15% during the decade). Value investors trace their roots to the famous "Security Analysis" textbook, written by Ben Graham, an economics professor at Columbia University. Warren Buffett was one of his students. Why the recent deviation in performance? Several reasons, including changes in the make-up of the economy, growth in intangible assets, and the current level of interest rates. The tide turned back in 2022, at least for a while, as the rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent years. For our list this week, we have screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have an Argus Financial Strength Rating of at least Medium, and have a yield of 3.0% or higher. These stocks are also featured in our High-Yield Theme Model Portfolio.

When looking for potential relative strength, we note that the Russell 2000 (IWM) continues to have a very messy long-term chart -- but it's possible that a large cup-with-handle pattern is being traced out. An index break over the prior high at 235 from late 2021 would complete the pattern. As long as that breakout holds, small-caps could have a lot of room on the upside. Relative strength for the IWM versus the S&P 500 is still in a downtrend, but has flattened since late 2023. The iShares Core S&P Small Cap (IJR), which is the ETF for the S&P SmallCap 600 (SML) index, looks a bit better. We like this chart more than the IWM chart as it is less volatile and closer to making an all-time high. However, in recent years, IWM and IJR have performed in-line with each other. The iShares MSCI Emerging Market ETF (EEM) remains weak on both an absolute and relative basis. The EEM does well when the U.S. Dollar Index (USD) falls and does terribly when the greenback is rising, this as the two are highly negatively correlated. Unless the dollar really breaks down, we would not invest in EEM, which has trailed the "500" since October 2010. Most of the big moves in Bitcoin have been highly negatively correlated with the USD. After a five-wave move higher, Bitcoin looks to be tracing out a bullish flag. For Bitcoin to break to all-time highs, we likely need the USD to continue lower. The COT data for the greenback just turned bullish, which could hurt Bitcoin. For now, we would be patient and wait for a break out of the flag. And, of note, there are many other ways to play crypto. (Mark Arbeter, CMT)

Verizon is a leader in the U.S. telecommunications industry. The company was created in July 2000 when Bell Atlantic and GTE merged.

With Labor Day weekend now behind us, insider sentiment, as expressed by data from Vickers Stock Research, doesn't suggest a broad mover higher for stocks, nor does it suggest a big move lower. Compared to the prior week, Vickers' sell/buy ratios have remained largely stable, with the Total One-Week Sell/Buy Ratio rising slightly to 4.22 from 4.05, while the Total Eight-Week Sell/Buy Ratio has fallen slightly to 4.52 from 4.75. Meanwhile, Vickers' Insider Index is now at -19.57 compared to last week's -19.49, but is improved from the annual low of -20.98 set in early August. Surrounded by an environment of swirling geopolitical issues, 'pending' interest-rate cuts, and a contentious presidential election ahead, it is hard to blame any investor, insider or not, for thinking a seat on the sidelines may be reasonable right now. On a sector basis, insider buying outpaced selling in the Energy sector last week by a factor of 9.5-times. On the flipside, selling by insiders last week was greatest in Financials, with shares valued at $366 million sold versus just $4 million bought. Selling was also of note in Consumer Discretionary, Healthcare, Information Technology, Industrials, and Consumer Staples. This week, analysts at Vickers highlighted insider transactions of interest at Bank of America Corp. (BAC) and Foot Locker Inc. (FL).