The investment industry has done a wonderful job convincing people that diversification is a no-brainer. Who can argue that it is prudent to put all your eggs in one basket? However, is diversification really protecting you or is it protecting your broker or financial advisor? Warren Buffett, the greatest investor in the world, said,
“Diversification is [...]
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One thing we haven’t mentioned yet is technical analysis. As a value investor you are likely long term oriented and you are probably not very interested in the underlying historical technical action of the security. It’s very interesting however that stated lines of support and resistance show up time and time again in the market [...]
Dshort.com published an interesting article recently that calculated what is known as the P/E10 of the S&P 500. The P/E10 is essentially the current real price of the index divided by the average earnings over the past 10 years. Benjamin Graham created this ratio to be a more robust measure of the market’s value, as [...]
Today was not a good day for the markets, to say the least. These daily market fluctuations don’t faze value investors though, due to the conviction we have in our investments’ true worth.
Recently I recommended an investment in Lockheed Martin Corporation (NYSE: LMT). Since it’s a high conviction investment of mine I tend not to [...]
Insider selling to buying is at a new high as public company insiders are locking in profits from the recent market rally. Insider selling is currently more than 33 times the value being bought. At the same time the S&P is up almost 50% from the March 9th lows and trades at a trailing P/E [...]
The markets have seen a run-up of over 40% since their lows in March. According to Bespoke Investment Group the S&P has reached its highest P/E since the end of 2004, due to a combination of market optimism without the earnings to support it. It may be getting very difficult to find value plays out [...]
Guest Post: Does the Recession/Recovery Climate Favor Value Investing Strategies?
August 9, 2010 · 1 comment
Jennifer Gorton is the content manager of Forex Traders. Her main task is to make sure all the articles on her site are very educational and useful while also planning out new ideas for the ever-growing financial widget section. She has recently expanded her knowledge on certain aspects of investing and is quite thrilled to [...]
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