Augmented Reality Craze and Stock Picks

Earlier this month, Pokémon Go took the augmented reality world by storm, sending throngs of folks into the streets hunting monsters. In his latest article for TheStreet.com John Reese, CEO of Validea, offered his insights on AR, where it’s headed, and the potential opportunities it presents in other industry sectors. The retail sector and social media space are two areas he highlighted as rife with potential. In fact, several retailers have launched AR apps to make shopping (and buying) easier for their customers. Needless to say, the possibilities for this technology are vast, and Reese identified the following four stocks […]

Guru Stock Screen of the Week: Finding Small Caps with the Lynch GARP Approach

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. This week’s screen is based on Validea’s Peter Lynch-based strategy, which looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets. The model’s criteria are listed below. P/E/GROWTH […]

Creativity in Investment Process

A recent article in the CFA Institute’s enterprising Investor explores the role of creativity in investing, highlighting legendary investor Peter Lynch’s comment to “invest in what you know,” but also pointing out that Lynch believed “it was also necessary to support [creative] insights with traditional, in-depth research.” Freelance author Ed McCarthy asks: “Where do creative investment ideas originate? Are investment managers at the mercy of serendipitous, eureka-like moments and automated screens, or can creativity be learned and inculcated in a firm’s investment process?” Jason Voss of the CFA Institute recently published a book seeking to guide investors in developing processes […]

Is the Next Peter Lynch or Warren Buffett Waiting in the Wings as Value Emerges

Bloomberg reports on the market shifts toward value as “returning to an era when stock pickers reigned,” drawing on comments by Bank of Montreal’s Brian Belski, who said “it’s a Warren Buffet or Peter Lynch-type world where you buy good companies and stick with them.” As Bloomberg puts it, Belski’s comments reflect that “the current climate recalls the 1980s” when Lynch’s record with Fidelity and Buffet’s success “rose to fame.” The article notes, “an index of value stocks in the [S&P 500] has seen a jump of more than three times that of its growth-oriented counterpart since the start of […]

Making Friends With Bear Markets

If you are trying to avoid the next bear market, Validea CEO John P. Reese has some advice: Stop trying to avoid the next bear market. In a piece for Forbes.com, Reese cites a recent column from Mark Hulbert, who monitors the performance of hundreds of investment advisors through his Hulbert Financial Digest. Hulbert says that over the past 15 years the best performers have been those who have stayed the course through bear markets. Those advisors he tracks who by and large avoided stocks during either the 2007-2009 or 2000-2002 bear market – when stocks were pummeled – are […]