As economic growth slows worldwide, stock investors are competing fiercely for shares of companies with the best earnings growth prospects. But that has made shares of such companies expensive. A better approach might be to target firms with modest growth but plentiful free cash flow at heavily discounted prices.
Top economists told investors Monday what many already knew: Economic growth in the United States will disappoint through the end of next year. Gross domestic product will expand 1.7% this year and 2.3% next year, according to a National Association for Business Economics survey, down from a May forecast of 2.8% growth this year and 3.2% growth next year.
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