By Jack Forehand, CFA (@practicalquant) — Value stocks have lost their mojo. After an extended period from 2000 to 2007 where they outperformed growth stocks by a wide margin, they…
Tag: Value Stocks
The Realities of Mean Reversion
By Jack Forehand, CFA (@practicalquant) “Importantly, reversion to the mean in the investment business extends well beyond the results for mutual funds. It applies to classifications within the market (small…
Value Stock Outperformance Could be Temporary
The recent outperformance of value shares over growth, according to an article in The Wall Street Journal, will be a short-lived trend. The rise in bank stocks and dip in…
Validea Gets Under the Hood: P/E Ratios
By Justin J. Carbonneau (@jjcarbonneau) — In our book, “The Guru Investor: How to Beat the Market Using History’s Best Investment Strategies”, we called Benjamin Graham the “Granddaddy of the…
Value Investing Performance Varies Depending on Measure
If you gauge value investing by evaluating “a portfolio that buys cheap stocks based on price-to-book ratios,” it hasn’t done too well over the past decade, according to a recent…
Stocks that Could Appeal to the Value Investor
In a recent article for The Globe and Mail, Validea CEO John Reese discusses the hefty divergence between growth and value stock performance so far this year and offers insights…
Value Investors Must Accept Stretches of Underperformance
Even though value investors have seen lackluster performance over the past ten years, panelists at a last month’s Morningstar Investment Conference argue this isn’t an indication that this approach is…
It Might Be Time to Cool Off on Value Stocks
The value stock-trade is getting crowded, according to an article in this week’s WSJ, with some analysts saying they have been “picked over like never before.” The article cites a…
Value Stock Picks in an Elevated Market
Although today’s market is a bit pricey, it still offers some values if you shop around and properly evaluate a company’s operations and financials. This according to Validea CEO in…
Contrarian Picks Based on David Dreman's Philosophy
The famous investor David Dreman, who Kiplinger once referred to as the “consummate contrarian”, follows a strategy which capitalizes on the emotional, knee-jerk reactions that make unpopular stocks underpriced, writes…