Valuation Driven® Investing: Exploiting Value and Growth Investors for Long-Term Wealth Creation
For the past 10 years, “Growth” investing has dominated “Value” investing. Yet in the previous 10 years, “Value” investing dominated “Growth” investing. These “styles” tend to go in and out of favor, leading investors to chase returns to the detriment of their long-term wealth creation.
Valuation Driven Investing® breaks this paradigm by focusing on companies that trade below their intrinsic value, factoring in company specific:
- Economic Profitability
- Investment Growth
- Competitive Reality
This webinar covers:
- Why earnings are a poor proxy for economic performance
- The unrealistic assumptions embedded in traditional DCF models
- How “Value” investors confuse cheapness with true value to their client’s detriment
- When “growth” investing destroys wealth
- Applying Valuation Driven Investing® for “value”, “dividend”, and “growth” strategies
The Astonishing Lack Of Value In Value
We have recently been discussing the lack of performance in value versus growth. Such is historically the case during the late-stage, exuberance-driven, bull markets. However, not everything classified as a “value stock” is necessarily a value. The problem today, more so than at any point previously, is the astonishing lack of value in “value.”
New York Region Sees 40% Bankruptcy Surge, Braces for More
The pandemic has battered New York City businesses, with almost 6,000 closures, a jump of about 40% in bankruptcy filings across the region and shuttered storefronts in the business districts of all five boroughs. It’s going to get worse.
S&P/Case-Shiller Home Price Index: 20-City Up 0.6% MoM in July
With today's release of the July S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index saw a 0.55% increase month over month which is cut to 0.34% with inflation adjustment.
Risk of Second Wave of COVID-19 Lockdowns
The biggest political risk facing investors may be the potential for politicians to implement national lockdowns in response to a rise in new COVID-19 cases that could lead to renewed recession and a new bear market for stocks.
September Regional Fed Manufacturing Overview
Five out of the twelve Federal Reserve Regional Districts currently publish monthly data on regional manufacturing: Dallas, Kansas City, New York, Richmond, and Philadelphia. The latest average of the five for September is 15.5, up from the previous month's 12.2. It is well below its all-time high of 25.1, set in May 2004.
The first of three presidential debates is set for the evening of September 29. The topics, chosen by the Chris Wallace, the moderator, will be the Trump and Biden records, the Supreme Court, COVID-19, the economy, racial tensions, and election integrity.
What Did We Know — And When Did We Know It?
We have a huge economic calendar and the first of three scheduled Presidential debates. The employment report will be the last one before the election, so I expect it to get special attention. Most of the other important economic data will also be reported during the week.
September Dallas Fed Manufacturing Outlook: "Recovery Picks Up Steam"
This morning the Dallas Fed released its Texas Manufacturing Outlook Survey (TMOS) for September. The latest general business activity index came in at 13.6, up 5.6 from 8.0 in August. All figures are seasonally adjusted.
THE IMPACT OF BEHAVIORAL FINANCE ON THE PSYCHOLOGY OF INVESTING
Behavioral factors can significantly impact a client’s financial wellness. This executive brief focuses on four — Future Concept, Impulsiveness, Materialism and Financial Literacy — to provide insights into identifying and addressing each factor during financial coaching, which financial professionals can use to create the optimal plan for each client.
Keep Calm and Stay Long: This Gold Price Correction Is Normal and Healthy
You may have seen headlines questioning whether this is the end of the gold rally. Hardly. Corrections are normal and healthy. During the rally of the 2000s that culminated in gold hitting its previous record high of $1,900, there were several significant pullbacks, some of them exceeding 20 percent.
Great Reset Update: $50 Trillion Debt Coming
I’ve warned for several years now that our growing global debt load is unpayable and we will eventually “reorganize” it in what I call The Great Reset. I believe this event is still coming, likely later in this decade. Recent developments suggest it will be even bigger than I expected. You could even say I’ve been too optimistic.
Weekly Investment Strategy
Today is National Family Health and Fitness Day! The COVID-19 outbreak undoubtedly brought our health and the health of our loved ones to the forefront of our minds, and with many states closing fitness centers in the initial stages of the lockdowns, the virus certainly challenged our traditional methods for exercise too.
Weekly Market Snapshot
The death of Supreme Court Justice Ruth Bader Ginsburg ignited a fight over her replacement. The increased animosity in Washington lowered the odds that lawmakers will reach agreement on a further fiscal support package and dampened investor sentiment.
Libation Rotation: How Alcohol Consumption Trends Have Changed in a Quarantine Environment.
While “Zoom beers” or cocktails reflect both social distancing and digital communication, the pandemic is simply accelerating social and economic trends already in place. People are saying if I can’t have a few drinks with my friends at the bar, I am going to take that money (and maybe more) and buy top-shelf liquor for my home.
Mr. T and Today’s Investment World
It would be correct to say that a number of us have had a little more “alone” time on our hands over the last 6 months and it is also correct to note that the online world provides many chances to waste said time. Which brings me to Mr. T of A-Team fame, who for completely nostalgic and personal family reasons, comes to the fore at particular times with his “I Pity the Fool” meme.
Insiders Sell Stock at Fastest Pace Since 2012 in Market Dip
A group of investors who correctly timed the stock market’s bottom in March isn’t bargain hunting yet during the current selloff. Instead, they’re stepping up sales, flashing an ominous signal to any dip buyers.
Headline Durable Goods Orders Up 0.4% in August
The latest new orders number at 0.4% month-over-month (MoM) was worse than the Investing.com 1.5% estimate. The series is down 4.6% year-over-year (YoY). If we exclude transportation, "core" durable goods was up 0.4% MoM, which was worse than the Investing.com consensus of 1.2%. The core measure is up 0.1% YoY.
Can Healthcare Companies Withstand a Blue Wave?
Democrats could sweep the November elections according to many independent polls and political experts. What would that mean for the healthcare and pharmaceutical sectors, which have shown sensitivity to the political landscape?
What’s ahead for post-election markets?
How will markets react to a Democratic sweep? A Republican resurgence? A contested result? In an already tumultuous year, a presidential election adds another layer of uncertainty, and typically, volatility rises in the months leading up to voting day. This year, with a pandemic in full swing, unemployment historically high, and economic growth at a standstill, the stakes are especially high. The two candidates have vastly different visions about the role of government, tax law, trade, and regulation, which may affect market performance going forward.
To help investors prepare, we asked Stephen Gallagher, the U.S. chief economist and head of research at Societe Generale to join us to discuss:
- How have presidential politics historically affected the economy—and what’s different this year.
- What’s ahead for stock investing? Where can investors turn outside growth and tech stocks??
- An overview of dividend growth strategies and why they may offer a compelling alternative in challenging market environments.
Market Correction: What Does It Mean?
When a stock index falls by more than 10%, it is often said to have entered “correction” territory. That’s a fairly neutral term for what feels like a nerve-wracking drop to many investors. What does a correction mean? What’s likely to happen after a correction, and what can you do to help your portfolio weather the downturn?
Kansas City Fed Survey: Manufacturing Activity Slower in September
The latest index came in at 11, down 3 from last month's 14, which indicates expansion in September. The future outlook decreased from 19 last month to 18 this month. Here is a snapshot of the complete Kansas City Fed Manufacturing Survey.
Here Comes the PEP
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