“If you want to beat the market, you can’t just track the index – you have to do something different. One strategy that has made outsized returns in the past…is to buy assets when they’re cheap. This goes for entire markets as well as individual stocks,” notes the author of today’s article, who advocates using the cyclically-adjusted price/earnings (CAPE) ratio to assess whether a stock (or stock market) is cheap. Which global stock markets appear cheap today based on CAPE – and what diversification strategy may be best when buying cheap markets? CLICK HERE.
Too little diversification is a bad thing, but so is too much diversification. One influential stock picker cited in today’s article once observed that “Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others which they know nothing about.” So is there an ideal number of stocks for active investors to own in order to help them beat the market? It turns out there may be. For more, CLICK HERE.
It’s probably not a surprise to learn that the stocks that were the most adored by analysts at the start of 2018 beat the overall market last year. A little more surprising, however, is the fact that the stocks that were the most despised by analysts at the start of last year also ended up beating the market. Given this, which stocks are the biggest analyst darlings (and which stocks are the most disliked by analysts) as 2019 gets underway – and which group (the adored or the despised) might end up doing better this year? CLICK HERE.
The stocks most popular with hedge funds have been beating the market so far this year, so it may also be worth noting which stocks hedge funds have been giving up on the most – and that’s exactly what Credit Suisse has done. The firm has identified “the stocks with the biggest declines in the number of large cap hedge funds holding their shares in Q4 2016”, and the skepticism demonstrated by a large number of hedge funds towards these stocks may be an indicator of poor returns to come. To find out what these 18 “fading stars” are, CLICK HERE.
“As is typical with various strategies designed to beat the market, when too many investors catch on and start to play the same game, the system typically collapses,” observes the author of today’s article. One strategy that appears to have suffered this fate, according to research by the Wall Street Journal, is to bet on stocks set to be added to the S&P 500, which the author notes was, “for many years, a sure-fire way to earn outsize returns”. With that strategy having unraveled, what did the Journal find was a better strategy these days when it comes to playing newly-added S&P 500 stocks? CLICK HERE to find out.