Introduction Almost by definition, value investing rarely performs well in the short run. This is especially true when you are in a strong bull market like we’ve been in since March 2009. Most companies as represented by the S&P 500 are currently trading at fundamental multiples that are significantly above historical norms. Below is a …
S&P 500
This is How You Can Beat the Market Without Fail
Introduction With this article I am going to present several ways that investors, especially retired investors, can beat the market without fail. However, what I will be presenting may not be what you are expecting, particularly if you have a narrow notion of what beating the market means. In other words, one of my primary …
How Overvalued Is The S&P 500? Watch This Video To See For Yourself!
3 Consecutive Double-Digit Years for the S&P 500?
The question posed by the title of this article is whether or not 2011 will be the third year in a row of double-digit returns for the S&P 500. In calendar year 2009 the S&P 500 returned 26.4% and followed this up in 2010 by earning 15.06%. As we look forward to 2011 we see …
The S&P 500 2010 Target of 1254 Reached
On September 5, 2010, we published an article on Seeking Alpha that suggested that the S&P 500 would reach 1245 by year end. Then on November 2, 2010 we republished our fair value S&P 500 calculation based on updated earnings forecasts by Standard & Poor’s Corp. The new forecast implied that the S&P 500 would …
Six Cyclical Stocks: When to Hold ‘Em, When to Fold ‘Em
For any investor considering investing in cyclical stocks, the admonition from Kenny Rogers’ famous song “The Gambler” should be heeded: “You got to know when to hold ’em / Know when to fold ’em / Know when to walk away / And know when to run.“ As the recent great recession has so emphatically reminded …
Why Buy and Hold Will Always Be a Sound Investing Strategy
It seems like the debate regarding the merits of the “buy-and-hold” investing strategy is alive and well. We always find these discussions amusing, because we believe that it is such a pointless discussion. There is no general argument or case that can be made to support the buy-and-hold strategy or to negate it. The only …