The Dreman Approach: A Contrarian Guide to Beating the Market

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 annual returns of 7.2% since its July 2003 inception vs. 5.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Dreman-based investment strategy. Taken from the August 16, 2013 issue of The Validea Hot List Guru Spotlight: David Dreman While all the gurus I follow have built their fame and fortunes using different investment approaches, there is at least one striking […]

Dreman: Stocks And Housing Are Places To Be

Contrarian guru David Dreman remains concerned about major inflation, and says investors should thus focus on stocks and the housing market. In a column for Forbes, Dreman says that economic improvements and the realization that higher interest rates will come as the economy improves have driven the stock market’s performance recently. “Currently a one-percentage-point rise in yield for a 30-year bond will reduce its price by 17%. A three-point increase in yield will knock its price down 41%,” he writes. “With financial crisis redux fears finally subsiding, investors are looking for places to increase their capital.” As for inflation, Dreman […]

The Dreman Approach: Thinking Contrarian to Beat the Market

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 annual returns of 6.9% since its July 2003 inception vs. 4.0% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Dreman-based investment strategy. Taken from the September 14, 2012 issue of The Validea Hot List Guru Spotlight: David Dreman While all the gurus I follow have built their fame and fortunes using different investment approaches, there is at least one striking […]

Contrarian Plays in the Oil Industry

In his RealMoney column, Validea CEO John Reese recently took a contrarian look at oil stocks. “Oil at the moment is on a slippery slope. Prices are at their lowest in months. In fact, they are dropping during the time of year they typically rise due to higher demand in the summer months,” Reese writes, citing several factors — Iraq re-entering the oil supply business, Libya ramping up production, a slowing global economy meaning lower demand, the continuing rise of alternative energy sources — as contributing to oil’s decline. Despite all that — or perhaps because of it — Reese […]