In a “Number Cruncher” column for Canada’s Globe and Mail, Ian McGugan takes a look at some overlooked bargain-priced stocks using Validea.com’s Joseph Piotroski-inspired strategy. “Piotroski, a professor at Stanford University, has discovered that applying a battery of accounting tests to a portfolio of value stocks can improve returns by eliminating ones that are financially too weak to recover and spotlighting ones with improving fundamentals,” McGugan writes, explaining that Validea’s Piotroski-inspired model targets stocks in the top 20% of the market based on their book/market ratios (which is the same as stocks with the lowest price/book ratios). Then it applies […]
One widely held belief about the stock market involves the notion that individual investors have been fleeing stocks like the plague recently. But according to a new report from Vanguard Group, that’s not the case, Jason Zweig reports on The Wall Street Journal’s Total Return blog. Vanguard takes an annual survey of 3 million-plus Americans who take part in retirement investing plans that the firm administers. In 2011, the new study shows, the percentage of those investors’ retirement funds that were invested in stocks fell by 3 percentage points from 2010, and was 8 points lower than it was in […]
David Winters, whose fund is in the top 7% of funds in its class over the past five years, according to Morningstar, says “things will get better” in the U.S., and he’s finding several bargains in the stock market. “Selective stocks are very cheap,” Winters tells Bloomberg. He says that after a recent trip to Asia, he’s high on consumer stocks, and he also talks about a mining stock he’s particularly high on.
According to a new study, Warren Buffett has been able to produce exceptional stock market returns over the long haul not because of value investing, but instead by focusing on “boring” stocks, MSN Money’s Michael Brush writes. The study, performed by Andrea Frazzini and Lasse H. Pedersen, found that “to do better in the market, use a little leverage, or borrowed money, in your account and load up on quality, low-beta stocks,” Brush writes. “Low beta means a stock goes up less than the market when it’s soaring, and down less than the market when it falls. This suggests the […]
Wells Capital Management’s James Paulsen says Europe’s woes will create volatility for the U.S. market, but won’t derail it. Paulsen tells Bloomberg that the sensitivity of financial markets to the Europe debt news is “decaying”. He says he thinks the U.S. market will be driven more by what’s happening in the emerging market world and in the U.S. itself. Paulsen says the U.S. economy has slowed, but that it’s not dead, and wonders if investors have loaded up too much on “safe haven” type stocks amid all the Europe fears.