Value Portfolio, Meet Big Mo’

Much like a shot of nutrient-rich wheatgrass can add a “power boost” to your morning smoothie, a shot of momentum can add a big boost to your value investing portfolio, Validea CEO John Reese says. The idea of focusing on hot stocks may make value investors, who tend to find bargain-priced stocks amid the beaten-down members of the market, cringe, Reese writes in his latest for Canada’s Globe and Mail. “But value stocks aren’t always falling. Nor are red-hot stocks always expensive,” he says. “While they are often portrayed as polar opposites, value and momentum are really two separate concepts. […]

Don’t Get Spooked By Value Stocks

Value stocks may have underperformed growth stocks for several years now, but Validea CEO John Reese says investors would be wise not to pronounce value investing dead anytime soon. “Given that it’s Halloween season, it seems appropriate that value stocks are starting to stage a comeback in the United States,” Reese writes in his latest column for Canada’s Globe and Mail. “Much like the villain in a scary slasher flick, value stocks have been beaten, battered and, by many, presumed dead. They’ve been losing to growth stocks since mid-2006, marking the longest stretch of imbalance in the growth/value cycle in […]

How Your Brain Hurts Your Returns — And What You Can Do To Stop It

What’s the biggest obstacle to investment success? Validea’s John Reese says it may well be our own brains. “The capabilities of human beings’ brains are staggering,” Reese writes in his latest piece for Forbes.com. “Over the course of many millennia, the development of our brains has allowed us to outsmart dangerous predators, build enormous cities and create complex machines like computers and automobiles. Our brains let us think abstractly, plan for the future and create emotion-provoking art and music.” “But,” he continues, “when it comes to investing, our brains have us hardwired to fail.” He says that our alertness to […]

Focus on Long-Term Food Trends, Not Short-Term Factors, Reese Says

One of the keys to successful investing is knowing the difference between long-term trends and short-term disruptions. That’s what Validea CEO John Reese says, and he says investors who can do that can take advantage of some opportunities in food-related stocks right now. While food prices are down globally over the past year, the factors pushing them lower – Russia’s embargo of US products, China’s slowdown, bird flu fears, and the strengthening dollar – are all relatively short-term factors, Reese says in his latest Forbes.com column. Longer-term trends point toward higher food prices, however, he contends. Growing world population, increasing […]

A Disciplined Market-Timing System That Nearly Doubled The Market Over Four-Plus Decades

Trying to time the market often leads to big problems for most investors. But Validea CEO John P. Reese says that, in the hands of a highly disciplined investor, a rules-based market-timing strategy can yield stellar results, as it has for him. “With market timing, the danger is less about the activity itself and more about how you go about it,” Reese writes in a column for Proactive Advisor magazine. “Many market-timers have little knowledge about how the market moves over time, they jump in and out of stocks or indexes based on what everyone else is doing. Their decisions […]