Every day, Validea.com uses John Reese’s Guru Strategy investing models to rank dozens of industries using a myriad of financial and fundamental data. The rankings include a value index, a growth index, and an overall index that takes both growth and value factors into account. Here’s a look at some of the current top-rated industries using the value index.
The tech sector evolves quickly, and that can turn one-time stars into afterthoughts in the blink of an eye. But Validea CEO John Reese says it’s not yet time to throw in the towel on brand-company’s older tech stars.
“America loves a second act. Whether it’s Mike Tyson reemerging after scandal, prison and bankruptcy to become a tragi-comic star of the screen, or Martha Stewart returning from prison a little softer, a little less uptight, we love to see once-powerful figures falter and then rise again in different form,” Reese writes in his Forbes.com column. “The stock market is no stranger to second acts. Often the market’s second acts come in the form of a once-high-powered, popular growth stock that hits a wall, and is presumed by just about everyone to be a total has-been. Then, some time later, after its shares have gotten cheap and the company has made some adjustments, the stock becomes an attractive value play.”
Reese says a lot of that seems to be happening in the tech sector right now, where his Guru Strategies are finding value in some tech firms that many consider passée. Among them: internet-pioneer-turned-“brand-company” AOL, which gets high marks from his Joel Greenblatt-based strategy.
Don’t believe the hype about falling oil prices being a bad sign. That’s what top economist David Rosenberg says.
Many of history’s best investors have been big proponents of investing in “quality” stocks — those that generate high returns on equity and assets, and strong, consistent margins. But Validea CEO John P. Reese says there is something very important to recognize when using quality metrics to pick stocks.
Looking for places where the risk/reward scenario is most attractive? Top fund manager David Herro says Europe is the place to focus.
Following this month’s elections, many are fretting about the likely gridlock that will dominate the American political system. But Kenneth Fisher says gridlock is just what markets like.