The “Luck” and “Randomness” of Index Funds
Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.
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The US Dollar, GDP Expansion, and Earnings
Investors wouldn’t think news flow is that robust given that stock market volatility in recent months has been practically nil, but news is coming in fast. Let’s check up on the performance of the US dollar, the rate of GDP growth as well as key companies reporting fourth-quarter earnings. Intel’s quarterly report was fantastic, for one! By Kris Rosemann The US dollar (UUP, UDN, USDU) hit a three-year low against the euro, but US Treasury Secretary Steven Mnuchin suggests a weaker dollar may be good for the US, which is a change from traditional US policy, though he was sure to note that the government is not concerned about short-term fluctuations in the currency. Meanwhile, of course, the euro … Read more
Video: Quants! You’re NOT Measuring VALUE and Nelson’s Theory of Universal Value
President of Investment Research Brian Nelson defines the concept of universal value and shows how quantitative statistical methods are inextricably linked to those of fundamental, financial, business-model related analysis. Value does not exist in respective process vacuums! Value is universal. Find out why. Running time: ~10 minutes. Tickerized for Valuentum’s stock and ETF coverage universe. Transcript Hi this is Brian Nelson from Valuentum Securities, and this is the tenth edition of a series that I call “Off the Cuff,” where I get in front of the camera and I talk for ten minutes. This is what we have to talk about today. We have to talk about this concept: The Theory of Universal Value. Value does not exist in vacuums … Read more
Dividend Increases for the Week Ending September 29
Below we provide a list of firms that raised/lowered their dividends during the week ending September 29. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week American Express Company (AXP): now $0.35 per share quarterly dividend, was $0.32. BancFirst (BANF): now $0.21 per share quarterly dividend, was $0.19. Bank of South Carolina (BKSC): now $0.15 per share quarterly dividend, was $0.14. CSB Bancorp (CSBB): now $0.22 per share quarterly dividend, was $0.20. Emera (EMRAF): now CAD 0.565 per share quarterly dividend, was $0.5225. The First of Long Island (FLIC): now $0.15 per … Read more
Valuentum’s 3 Breakthroughs in the Field of Finance and More
Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more
The Next Industrial Revolution – Internet of Things
Image Source: Skyworks Summary: · The Internet of Things has been called ‘the next Industrial Revolution,’ and the revolution is already well underway. · Explosive growth can be expected in the number of devices connected to the Internet in coming years, and the data extracted from such devices will enable businesses to make significant value creating improvements to operations. · The proliferation of the Internet of Things will take a combined effort from the end user of the technology to smart device manufacturers to software providers to networks. · The newsletter portfolios have significant exposure to early large-cap adopters of the IoT. We love the potential we see in some of our favorite names to capitalize on ‘the next Industrial … Read more
Commodity Price Pressures Dinging Industrial Bellwether Expectations
By Kris Rosemann Commodity resource prices, while suppressed, are said to be stabilizing, but stabilization at low levels does little good for many operators tied to commodity-based end markets. Such is the case for several industrial giants General Electric (GE), 3M (MMM), and Caterpillar (CAT), all of which have seen their worldwide operations impacted by the effect that a prolonged trough in commodity prices has had on global economic growth, “Industrial Bellwethers Hit by Global Economic Growth Concerns.” We recently highlighted the organic growth pressures industrial bellwether Honeywell (HON) has been experiencing, “Honeywell’s Stock Up 170% Since End of 2009; GE a Better Bet?” and its peers have been echoing its concerns. GE reported third-quarter earnings October 21, and while … Read more
Honeywell’s Stock Up 170% Since End of 2009; GE a Better Bet?
Has Honeywell’s business value truly increased by 170% in less than seven years, or are shares overheated? We think investors should continue to exercise prudence in today’s stretched market. GE may be a better relative bet than Honeywell. By Brian Nelson, CFA What a wonderful ride it has been these past seven years from the March 2009 panic bottom. The S&P 500 (SPY) has experienced one of its strongest showings in history during this time, and even large caps have posted returns that have turned heads. The share price of Honeywell (HON), for one, has leapt more than 170% since the end of 2009, simply a huge run for a company of its size. The question, however, on everyone’s mind: … Read more
Industrial Bellwethers Hit by Global Economic Growth Concerns
By Kris Rosemann Shares of newsletter portfolios holding General Electric (GE) and its rival Honeywell (HON) took a hit early July 22 after both conglomerates indicated a more difficult operating environment in their second quarter reports. First, let’s address GE. The company has kept the momentum going in its GE Capital exit plan as it has now signed $181 billion in asset sales, completed its de-designation as a significantly important financial institution (SIFI), and closed GE Asset Management. In addition, the firm unloaded its GE Appliances business to Haier for $5.4 billion in the second quarter, a streamlining-oriented removal of a somewhat immaterial portion of GE’s overall business. We like what the progress in its exit plan and de-designation as … Read more
GE Continues Transformation; Steady Growth at Honeywell
Shown: GE’s backlog of unfulfilled orders remains robust, a sign of durability and strength. Image Source: GE’s earnings presentation. We continue to be encouraged by the progress newsletter portfolio holding General Electric (GE) is showing in its GE Capital exit plan. The firm is now ahead of schedule on that plan, having signed $166 billion in asset sales and closed $146 billion of those sales. Its transformation is now ~80% complete, and it continues to pick up momentum in 2016. The company also submitted its application for de-designation as a systematically important financial institution (SIFI) on March 31. However, as GE continues its transformation, which includes the integration of recent acquisition Alstom, its reported results have become quite convoluted as … Read more