Hot List Newsletter

Most Recent Hot List Issues

3 most recent issues require subscription. Historical issues can be viewed free of charge.


Validea Hot List

Are you Invested with a Closet Indexer?

Closet indexing has been on the rise and investors are better served, over the long run, looking for stock selection strategies that look different than most major indices. Validea's models offer a refreshing alternative for those looking for differentiation in today's hyper competitve stock market.


Validea Hot List

What a Difference a Year Makes

As we head into the home stretch of 2010, the mood on Wall Street and Main Street seems to be one of trepidation, mixed with a touch of very cautious optimism. A deeper look at where we stand using key economic facts and figures.


Validea Hot List

Looking Past the Fear With a Focus on Fundamentals

Market participants could be too negative and fearful, a result of the emotional overhang from the financial crisis. According to one expert, we could be entering the second phase of the bull market, which will be a period where growth is rewarded by investors.


Validea Hot List

Please Hold The Market Talk Froth, For Now

The broader market picture looks far from frothy, particularly when it comes to U.S. stocks. Despite the fact that many high-quality U.S. stocks are trading at very attractive values -- and the fact that bond prices are very high and yields are very low -- investors are continuing to dump more cash into the perceived safety of bonds.


Validea Hot List

The Fed's Decision -- To Ease Or Not To Ease

The Fed's decision to embark on quantitative easing could be signifcant for the markets. In this issue, we look at what QE2 could mean for stocks and the economy.


Validea Hot List

It's Not (Just) The Economy, Stupid

In today's world of instant information, it can be easy to get caught up in the reems of economic data that investors are deluged with every day. But as you wade through the ocean of economic figures, it's important not to lose sight of a key broader point: The stock market is not the economy. Learn why in this Hot List issue.


Validea Hot List

A Portfolio of All Shapes and Sizes

Investors can find values in companies of all sizes (small, mid and large) and in both value and growth companies. The key, as we outline in this issue, to find stocks that meet certain fundamentals and not be restrict your investable universe.


Validea Hot List

Investing During Periods of Discipline Amid Turmoil

Staying disciplined through difficult and volatile times is, in fact, something that the majority of the gurus who inspired our strategies at Validea talked about extensively. Here we review the lessons from Buffett, Lynch and other great investors.


Validea Hot List

All Bull Markets Come with Corrections

In this issue, we review how past bull markets have developed, to see what has happened historically after a bull run first hits trouble (as it has recently). To do so, we examined four bull markets (using the S&P 500) that cross a wide span: those that started in 1957, 1974, 1982, and 2002.


Validea Hot List

The 800 lb Gorilla - Unemployment

In our continued look at different levels of our economy, today we look at where we stand with unemployment and where today's figures compare to past economic recoveries.


Validea Hot List

Fears of a "Double-Dip" Recession Pick Up

The recovery has slowed in the past couple months, and there are still very legitimate concerns about the economy. But before you get caught up in the headlines announcing the slowing GDP and manufacturing growth, we point out a few key economic facts. Read this issue to learn more.


Validea Hot List

The Seven-Year Report Card of Validea's Guru Investing System

In this newsletter, we report on the performance of our guru models and our consensus portfolios. It's been a profitable seven years, and while the 2008 Bear Market was tough, our strategies have bounced back nicely.


Validea Hot List

Adding a Diverse Quartet of New Names

The Hot List is shaking things up today on its regular monthly rebalancing, selling four of its holdings and replacing them with four that are now garnering higher scores on my guru-based models. The newcomers to the portfolio are quite a mix.


Validea Hot List

Get Your Head Out of the Game

Predictions, emotions and lack of discipline are all factors that impact our investing returns, but by understanding the limitations we have as humans, you can utilize systems and models to put the odds in your favor when investing. Read this issue to find out more.


Validea Hot List

Thinking Outside the Style Box

In the dozen or so years spent studying history's most successful investment strategies, we've found that paying too much attention to such style-box distinctions (i.e. large cap value, mid-cap growth) can be harmful to your returns. Here are the reasons why and what you should be aware of.


Validea Hot List

What Makes Stocks Tick

What drives stock prices over time? The four key factors are 1) inflation 2) dividend income 3) real book value growth and 4) price-to-book growth. We discuss each of these and the biggest factor might surprise you.


Validea Hot List

The Gloomy Bull Market Marches On

Stocks are up close to 80% off their March 2009 lows, the economy is showing clear signs of recovery, and companies are posting strong earnings and in many cases sporting solid balance sheets. But you probably wouldn't know it if you listen to the financial news or read what the pundits have to say.


Validea Hot List

The Benefits of Blending Various Value and Growth Investment Strategies

The combining of value and growth investment strategies, like we do with the Hot List or Top Five Guru models, provides a level of strategy diverisification that is worth discussing. Learn more in this Hot List edition.


Validea Hot List

Stocks the Best Game in Town

Stocks are looking to be the best alternative for decent returns according to many, including PIMCO's Bill Gross.


Validea Hot List

A (Re-)Balancing Act

In this issue, we discuss the importance of having a disciplined portfolio rebalancing methodology that looks to sell and buy stocks at predetermined intervals based on factors that have changed.


Validea Hot List

Old Principles, New Features via Validea Professional

We walk investors through our Validea Professional service - a new add-on for investors looking to further leverage our guru-based models through high conviction trade alerts, country and sector portfolios and guru stock reports.


Validea Hot List

Are we Really Doomed by Debt?

All the talk of the US fiscal health has us looking back at other periods of time where the country ran up high deficits and how the stock market performed during and after those periods. Equities have and will still offer long term investors an opportunity for solid returns despite all the talk of too much debt.


Validea Hot List

Finding Profits in the "Lost Decade"

While the 2000s was likely a lost decade for investors who plopped money into broader U.S. market index funds, they weren't lost for others. If you had a simple, sensible, disciplined approach, you could have kept your portfolio in the black; you might even have generated some big gains.


Validea Hot List

Study: What Works At this Stage in the Market Cycle

James O'Shaughnessy, one of the investors who we admire and respect (and one of our gurus), and his firm recently published a research paper outlining what types of stocks performed best, typically, at various Bull Market stages. The conclusion: we will likely start to see a shift toward superior performance from higher quality stocks.


Validea Hot List

Five Reasons for Optimism in 2010

While we shy away from making macro calls, we do like to look at the facts and give our readers a sense of how we are feeling and why we may be more (vs. less) optimistic on equities in the short to mid term. Here are five reasons why we are constructive on stocks right now.