Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we look at a page in David Dreman’s classic “Contrarian Investment Strategies”, in which Dreman shows that the stock market is far more resilient than many give it credit for — which has tremendous implications for how to invest when crises occur.
Contrarian guru David Dreman says policymakers have created “a form of financial Ebola” that is threatening to wipe out the savings of many Americans.
Contrarian guru David Dreman says the Federal Reserve has been playing a dangerous, unsuccessful game by keeping interest rates so low for so long. But he says there are ways for investors to cure the “easy money hangover.”
In an interview with Steven Halpern for MoneyShow.com, Validea CEO John Reese recently talked about the Guru Strategy he bases on noted contrarian investor David Dreman.
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the David Dreman-inspired strategy, which has averaged 6.5% annualized returns since its inception more than 10 years ago, beating the S&P 500. Below is an excerpt from today’s newsletter, along with several top-scoring stock ideas based on the Dreman-based investment strategy.