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Video: Janet Yellen and Speculation Versus Investing

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President of Investment Research Brian Nelson talks about the importance between prices and valuations quoting a recent Fed statement. He also goes into what truly constitutes investing versus speculation. You can’t miss it. Running time: ~11 minutes To view Valuentum’s updated YouTube page, please see here.  Related ETFs: SPY, DIA, QQQ

Nelson Answers Questions! Valu + entum

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President of Investment Research Brian Nelson answers questions about the stock market and investing. Keep the emails and comments coming! Running time: ~10 minutes. To view Valuentum’s updated YouTube page, please see here.  Related ETFs: SPY, DIA, QQQ

Video: Backwards, Forwards, Frameworks, Boeing/GE, and Methodology

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President of Investment Research Brian Nelson talks about the tragedy of the investment business in using backward-looking information, the absurdity of making prognostications about stock market returns, market sentiment through the price of Boeing, applying future forecasts and predicting dividend cuts with GE, and why Valuentum’s methodology makes sense for long-term investors. To view Valuentum’s updated YouTube page, please see here.   

Is It Time or Timing in the Market?

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Image Source: Dimitris Kalogeropoylos By Brian Nelson, CFA Since joining the workforce after undergraduate studies, those that will be turning 30 years’ old during 2017 will have never witnessed a meaningful bear market, large down year, or even a substantial “correction” in the stock market during their working lives. That’s right — many workers that were born in the mid-1980s when Ronald Reagan was President are probably starting to believe that they’ve found the secret to investing success and that broader US markets only go up (or down just a little at times, but they always recover and go higher). No matter if this assessment of their opinion of the markets is true or not may not matter. At the … Read more

Podcast: FALLACY of Index Funds!

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The Valuentum Analyst team digs deep into the logical fallacy that paved the way for index funds, and the very real risks investors take while driving with their hands off the wheel looking only through the rear-view mirror. Summary Please read the first 3 minutes of the presentation (there is no audio at the beginning). Pause the program if you require more time to read. If you still don’t see the FALLACY that paved the way for the creation of index funds, be sure to comment below. The last 10 minutes of the program comprises a discussion by the Valuentum team of active versus passive. Looking forward to a good discussion. Please be sure to view the transcript below if … Read more

Breaking: Markets in Free Fall

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By Brian Nelson, CFA I was up late last night watching the 10-year Treasury fall below 2%, crude oil drop below $28 (and now below $27) per barrel, and the Dow futures collapse more than 500 points. Asset correlations are going to 1 — so much for modern portfolio theory, right? The benefits of diversification are sometimes absent at the very time you need them the most. If market observers didn’t learn this during the Great Depression, certainly they must have learned it during the Financial Crisis of 2008-2009. That’s why we like cash so much at times. We have a 35%+ cash weighting in both newsletter portfolios. The Dow Jones Industrial Average (DIA) is now down ~400 points (-2.5%), … Read more

How Do We Use the Valuentum Buying Index?

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How Do We Use the Valuentum Buying Index (VBI)? By Brian Nelson, CFA   Hi everyone,     Hope you are doing great!  We often receive questions about how we use the Valuentum Buying Index (VBI) rating system, one of the key metrics we use to source ideas for our members, but we think it is equally important to mention up front that the VBI is only one of the many facets of our website and services. For example, if you haven’t checked out the Dividend Cushion ratios on the stocks in your portfolio or the dividend growth product (from individual reports to the newsletter and beyond), surely you are not maximizing your membership! Don’t forget about the Economic Castle rating, … Read more

The Market Doesn’t Go Straight Up

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Key Takeaways: ·     Though we fall short of prognosticating on the immediate moves of the stock market, we think the near-term risk-reward of the broader market is growing more and more negative. Why? o    Market volatility is back due to Fed speak and poor data and pricing action from Asia. Typically, market hiccups signal that a change in price direction is near (we’re no longer going straight up). o    The significant out-numbering of poor scores on our stock-selection methodology, the Valuentum Buying Index, relative to good scores suggests to us that a higher degree of caution may be in order. o    According to Factset, the forward price-to-earnings ratio on S&P 500 constituents registers a 14.4x reading (as of last Thursday), above … Read more