Investment Opportunities in Europe

European equities are back in favor with Investors, who pulled approximately $100 billion from the asset class in 2016, writes Validea CEO John Reese in a recent article for Nasdaq. The article explains that below average performance in oversea stocks over time has led to a big difference in valuations compared to the U.S. market, presenting opportunities for investors. The article also discusses mean reversion and the role it plays in market movements. Reese identifies the following five high-scoring international stocks: Vale SA (VALE) is a global producer of iron ore, iron ore pellets and nickel, and earns high marks for […]

Peter Lynch Style Investing: Simpler is Better

 In an article for this week’s Nasdaq, Validea CEO John Reese highlights the investment philosophy of guru Peter Lynch that centers on the importance of investing in what you know. “Hardly a pithy inside tip” writes Reese, “but very characteristic of the Lynch approach.” Lynch generated one of the most impressive track records of all time during his tenure as manager of Fidelity’s Magellan Fund from 1977 to 1990. Reese outlines the concepts that form the foundation of his common-sense investment strategy, including how Lynch categorizes companies. He also describes one of the most important metrics in Lynch’s methodology, the […]

Stock Picks for the Level-Headed Investor

When buying stocks, it is essential for investors to value process over outcome, says guru James O’Shaughnessy during a recent speaking engagement. This according to a recent Nasdaq article by Validea CEO John Reese. O’Shaughnessy shares a cautionary tale of a client who would knee-jerk when the market rose or dipped, often buying or selling based on emotion rather than on fundamentals. He stresses, writes Reese, how this practice will “get you into trouble, since by the time you want to buy in most of the easy gains have been made and, conversely, once you decide to sell most of […]

Robo-Investing is Gearing Up

As money managers allocate more resources to quantitative model-building, they are also amping up robo-advising services for clients seeking low cost investment alternatives, writes Validea CEO John Reese in this week’s Forbes. Since many of these strategies are outperforming actively managed funds, writes Reese, they are increasingly attractive to investors. He cites the example of BlackRock, the largest asset manager in the world (overseeing more than $5 trillion in assets), which announced last month that it will consolidate some actively managed mutual funds with “computer-centric peers.” Using guru-based stock screening models he created that rank stocks “based solely on their […]

Fundamentally Strong Picks for the Contrarian Investor

The Citigroup Economic Surprise Index, which measures how current economic data is comparing to expectations, is on the rise along with investor confidence regarding the expanding economy, writes Validea CEO John Reese in a recent article for Forbes. Historically, however, markets perform best not during times of economic expansion, but rather when the economy is improving despite lower expectations, writes Reese. When things are going relatively well, he argues, “forecasters tend to extrapolate forward using recent trends and assume the good news will continue.” Reese outlines the contrarian investment approach of guru David Dreman, who argues that investors can beat […]