IWN

Bitcoin, U.S. Large Cap Growth, and Technology Continue to Dominate Returns

by

Image source: Seeking Alpha, retrieved November 28 —– Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.  The Benefits of Premium Membership Sign Up Today. First 14 days FREE!  At Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m], we strive to stand out from the crowd. Most investment research publishers fall into a few camps, whether it be value, growth, income, momentum, chartist or some variant of the aforementioned. We think each in its own right holds merit, but the combination of these approaches is even more powerful. After all, stock price movements aren’t just driven by investors of the value or … Read more

The Valuentum Weekly Is a Hit! Only Delivered By Email!

by

Image: Excerpt from the November 14 edition of the Valuentum Weekly. November 14, 2021: Inflation Is Positive for Nominal Earnings While Interest Rates Remain at All-Time Lows Tickers mentioned: GOOG, FB, PYPL, DIS, JNJ, BRK.A, BRK.B, ASML, BYND, RIVN, TSLA, JD, WB, BABA, GE, TOSBF, Z, ZG, OPEN, RBLX, GLD November 7, 2021: Large Cap Growth Has More Room to Run Tickers mentioned: SCHG, GME, AMC, BBBY, CVX, XOM, XLE, MA, V, PYPL, QCOM, RSG, NEM, TSLA, PTON, Z, ZG, F, IWN, GMET October 31, 2021: Happy Halloween! Tickers mentioned: AAPL, AMZN, QQQ, SPY, INTC, FB, GOOG, MSFT, LMT, MVRS, DLR, XOM, CVX, DIS, SLB, HON, INTC, CMG, PYPL, PINS, TSLA, HTZZ, PTLO, RSG, SBUX, MCD, NEM, SCHG, IWN October 24, … Read more

The Investment Case for More Gender Diversity

by

Image: The Impact Shares’ YWCA Women’s Empowerment ETF (WOMN) has trounced the S&P 500 since inception, while the SPDR SSGA Gender Diversity Index ETF (SHE) has bested the quantitatively-hailed small cap value ETF over the same time period. By Valuentum Analysts There has been a plethora of research over the years regarding the value of diversity on teams, in corporate boardrooms, and across asset management. The CFA Institute defines diversity as “the spectrum of human attributes, perspectives, identities, and backgrounds,” and notes that “the discussion around motivations for pursuing diversity in investment management often revolves around two main areas: ‘the business case for diversity’ (i.e., with more diverse perspectives, business outcomes will improve) and ‘because it is the right thing … Read more

Valuentum Weekly

by

Image: Bitcoin, technology and large cap growth have led the pack the past 5 years while pipeline MLPs, crude oil and energy stocks have fallen way behind. Large cap growth > small cap value. Bonds, non-US stocks continue to lag. The Valuentum Weekly is a brand-new weekly market commentary from Valuentum Securities, released each weekend in digital form. The Valuentum Weekly offers members a weekly synopsis of the markets and major events. It will be straight and to-the-point. Our goal is to deliver to you the latest information and insights. We welcome your feedback on how we can make the Valuentum Weekly as useful and as relevant for you as ever! Takeaways The markets offer investors an asymmetric risk opportunity, … Read more

Risk Management: Diversified Stock Selection or Modern Portfolio Theory?

by

Image Shown: If one had concentrated in large cap growth the past 10 years (blue fill), or basically in undervalued stocks that had strong momentum, one would have outperformed the category of small cap value (IWN, second best in chart) and the 60/40 stock/bond portfolio (VBINX, orange) by an incredible 200+ percentage points. Image Source: Morningstar. By Brian Nelson, CFA I hosted a small estate sale late last week. Hours in the blistering sun brought a number of interested buyers and some small change, but that several people and families found use for my brother’s things has left a feeling in me that’s priceless. It’s been a while since one of our emails hit your inbox, but things have been slow … Read more

How to Navigate the Low Return Environment

by

Image Shown: Investors continue to gamble on meme stocks and cryptocurrencies. Image Source: QuoteInspector.com.  Modern Finance Is Dead, Long Live Value Trap By Brian Nelson, CFA At Valuentum, we don’t believe in many of the quantitative theories out there. We like to operate within the stock component of market returns, as this has historically been the strongest place to focus one’s efforts. We don’t think it makes sense to add “bad” assets to a portfolio just for the sake of diversification. Can you imagine adding pipeline MLPs to your portfolio in June 2015? If we can find great ideas within the stronger relatively performing stock market, we think we’ll be far better off than any stock/bond mix that one may choose. … Read more

Markets Back on Track – Seeking Net-Cash-Rich, Free Cash Flow Generators with Pricing Power!

by

By Brian Nelson, CFA The past few trading sessions have tested the conviction of many equity holders, but we remain focused on the long run and believe the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, and the High Yield Dividend Newsletter portfolio (available to registered members of that publication) are well positioned for long-term capital appreciation potential, dividend growth potential, and sustainable high yield dividend income, respectively. During the trading session May 13, the Best Ideas Newsletter portfolio was led by some of our favorite net-cash-rich, free-cash-flow powerhouses. Moving convincingly higher, Apple (AAPL), Cisco (CSCO) and Microsoft (MSFT) have strong net cash positions on the balance sheet and generate impressive free cash flow well in excess of expected cash … Read more

ALERT: Bull Raids, Short Squeezes and Highly Unusual Market Activity

by

We are putting short investors on high alert! By Brian Nelson, CFA In late 2018, Valuentum published Value Trap, a book that warned to all that would heed its warning that a collapse in the traditional quant value factor was coming and that excessive volatility in the markets caused by price-agnostic trading–or those that aren’t paying attention to fair value estimate calculations–would only build and build to eventually reach extreme and irrational levels. The book, while hugely successful winning award after award, was largely ignored by the media, despite our best efforts to get the word out. Now, the chickens are coming home to roost. Image Shown: The book Value Trap warned about the impending collapse of the value factor, … Read more

Best Ideas Newsletter Portfolio Holdings Are Surging!

by

Image: The holdings in the Best Ideas Newsletter during the trading session November 4. We continue to pound the table on our best ideas. By Brian Nelson, CFA If you were like me, you stayed up as long as you could last night watching the U.S. election coverage before it became too difficult to keep your eyes open. When I went to sleep, it seemed as though Donald Trump would be re-elected. The only state that appeared to flip to the Democrats from the 2016 election was Arizona, meaning Trump would still retain greater than the 270 electoral votes required to gain re-election. Well, that was last night, and this is today. As more and more votes came in last … Read more

Second Quarter Earnings Roundup

by

The figure above shows the performance of the simulated Best Ideas Newsletter portfolio from inception May 17, 2011, through December 15, 2017, relative to its declared benchmark, the S&P 500 (SPY), on an apples-to-apples basis, with dividends collected but not reinvested for both the newsletter portfolio and the SPY, as reported in the monthly newsletter. The simulated Best Ideas Newsletter portfolio outperformed the S&P 500, including reinvested dividends in the benchmark, since inception (May 17, 2011) and since the inaugural release of the newsletter (July 13, 2011) through the end of the measurement period (December 15, 2017). The results are hypothetical and do not represent returns that an investor actually earned. Past results are not indicative of future performance. Valuentum … Read more