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Tag: Market Valuation

Finding Value With The Piotroski F-Score

Finding Value With The Piotroski F-Score

The following is part of a series originally published at the end of November on SeekingAlpha. The series was designed to test the effectiveness of the Piotroski F-Score in today’s market. The F-Score was designed to help investors outperform the market, but if it was really that good, surely everyone would be using it? The stocks below were selected using computer screens, no human interaction was involved, the stocks that qualified for the F-Score screen, entered the test portfolio. I’ve always believed…

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Market Sentiment

Market Sentiment

“…The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to…

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Actively Managed Funds Consistently Outperform Trackers

Actively Managed Funds Consistently Outperform Trackers

According to research conducted by FE Trustnet, the average active UK growth fund has beaten an average, standard tracer fund over a period of one, three five and ten years. To say that this is astonishing is an understatement. Many market commenters have been reiterating the benefits of passive of active for some time now, and even market oracle, Warren Buffett has bet against actively managed hedge funds, making a $1 million bet with hedge-fund manager Protégé Partners that a…

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Only Some of the Market is Overvalued

Only Some of the Market is Overvalued

There is much speculation about which direction the market will take in the next few weeks. Many analysts are stating that the markets valuation is now stretched and will not move any higher until either earnings rise significantly. However, it would appear that while some stocks in the market are indeed trading on stretched valuations, some sectors are still undervalued. Indeed, Bank of America and other market analysts recently put together a study of equity ratios dating back 27 years…

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