…says, “lead me to conclude that the market, at the very least, is not dramatically overvalued” and “may not even be overvalued at all, just more highly valued.” These are:…
Search Results for: value
Behavioral Return Gap: How Investors May Lose Even if a Fund Wins
…to 2003, “value funds had annual buy-and-hold returns of 9.36%” but the “dollar-weighted” returns (those actually received by investors) for value funds were only 8.05%. Thus, “investors eliminate the long-run…
Jeremey Siegel's Market View for 2016
…earnings recovery.” He elaborated: “in the low-interest-rate environment we are in, a [PE] multiple of 18 to 20 could be considered a fair market value. If you apply that multiple…
Positioning for 2016
Patrick O’Shaughnessy of O’Shaughnessy Asset Management says “if you look historically at what broad categories do well during period of rising rates . . . value stocks tend to…
Securing Alpha From Small-Cap Stocks
…exploited.” They examine small-cap investing according to value, momentum, and quality strategies, noting that “[b]ecause small-cap stocks have high trading costs, implementation skill matters—a lot.” Thus, “[p]assive implementation of investment…
Is the Weakness in High Yield Signaling a Recession?
…High-yield bonds are issued by heavily indebted companies that are more likely to default, and declines in their value can signal a coming downturn. George Bory of Wells Fargo Securities…
Dividend-paying Stocks Slipping Since Financial Crsis
…dividend-paying stocks tend to follow the fortunes of value stocks. Growth companies tend to invest more of their cash flow into their businesses, whereas value companies are often more mature…
Re-defining Value
…a value investor relying on price-to-book, which is the traditional measure of value and defining trait of the Russell 1000 Value Index, would not have reaped the gains that one…
Profitably Switching In and Out of Small-Cap Stocks
…in dispersion of earnings estimates); and expectations for economic growth (measured by treasury yields). As stated in Barron’s, small-caps should outperform “when small companies represent a good value and when…
AQR Tests Market Timing Techniques, Helping to Boost Long Term Returns
…the market in moderation. The article cautions against extremes, but moderately applying the value-plus-momentum strategy to an equity strategy yielded a “1.2 percentage point increase annually over a buy-and-hold portfolio”…