Stock Selection and Analysis - Articles & White Papers
Research and papers relating to stock selection and security analysis. This section includes reports and articles which help fund managers and investment analysts examine their stock selection process. Popular themes in this category include papers on company valuation methods; how to assess equity valuation and identify the best approaches to stock screening; how to use price/book ratio...
, PE multiples, PEG ratios, equity cash flow, free cash flow, APV (Adjusted Present Value), economic profit, EVA, dividend discount models, and other metrics. Papers which help equity fund managers use factor-based investing models to build a better beta (smart beta approaches using risk factors to achieve superior returns) are also well read. Other surveys and white papers in this section look at the case for active equity managers, the characteristics (hallmarks) of successful equity managers, how to use big data in stock selection, active versus passive strategies, momentum strategies, trading rules, pairwise correlations and stock volatility. A key question for equity managers is how to determine the valuation of an equity market. One of the most credible tools for equity valuation is the Shiller PE. To see our latest blog post on the Shiller PE and economic conditions, please visit https://www.savvyinvestor.net/blog/Shiller-PE-Economic-Conditions
Different narratives are evolving at this point in time, leading to higher uncertainty in the market. The monetary narrative is the clearest and most advanced one. Central bank mandates are evolving from being anchored to keeping inflation under control, to a situation where extraordinary monetary policy becomes the new…
Institutional portfolios such as corporate pension plans are increasing allocations to illiquid private assets seeking better returns and diversification. However, as allocations increase, a portfolio’s liquidity structure changes, sometimes abruptly. How can a CIO increase their confidence with private asset allocations and…
CFA Institute Research Foundation introduces the first edition of the International Guide to Cost of Capital Summary Edition (IGCC) from Duff and Phelps/Kroll. This publication, which examines the important difference in risk characteristics of investing in various countries, is now a valuable part of the Research Foundation…
The 2021 Invesco Global Factor Investing Study continues Invesco's research into global factor investing, a form of investing in which securities are chosen based on attributes that have tended to offer favourable risk and return patterns over time.
The State Street research team proposes a framework to map out the distinct sources of momentum and reversal when it comes to a stock’s total return. Is it better to focus on single-stock, industry or factor trends? And how does market risk and time horizon affect them?
This best risk model is the one most closely aligned to your strategy. In some cases, using a single integrated regional model may help you achieve better results. In this white paper, Qontigo undertakes a variety of tests across different types of portfolios, comparing the performance of the Linked Model, the regional sub-…
The global economy remains on track for a rapid and broad-based economic recovery from the Covid-19 pandemic. Notwithstanding concerns around new variants of the virus, restrictions are generally being eased, as the vaccine roll-out progresses well, allowing economies to more fully re-open. Moreover, the tightening of…
Invesco believes this economic cycle is in its infancy and, despite valuation concerns, are sticking with a preference for cyclical assets within their Model Asset Allocation. They make minimal changes, with a small reduction in the allocation to commodities (to Underweight) and a corresponding small increase to equities (…
Invesco believes this economic cycle is in its infancy and, despite valuation concerns, are sticking with a preference for cyclical assets within their Model Asset Allocation. They make minimal changes, with a small reduction in the allocation to commodities (to Underweight) and a corresponding small increase to equities (…
Emerging markets have undergone significant changes since the term was initially coined in the early 80s. Having become an asset class in their own right, emerging markets equities have moved from being an exciting, but also rather volatile investment, to showing signs of stability and maturity. Combined with dynamic growth…
In just over a year, the world has gone through incredible change – thrown into a pandemic and plunged into a global recession. Now many parts of the globe are experiencing a resurgence in economic activity, benefiting from the development and distribution of effective vaccines, as well as significant fiscal and monetary…
In just over a year, the world has gone through incredible change – thrown into a pandemic and plunged into a global recession. Now many parts of the globe are experiencing a resurgence in economic activity, benefiting from the development and distribution of effective vaccines, as well as significant fiscal and monetary…
This paper outlines a pragmatic and multi-pronged approach to cashflow forecasting that SimCorp believes can form the basis of a prudent system for making sense of this complex, challenging, yet increasingly relevant, corner of the investment world. It is also to be seen as an integral part of SimCorp’s strategy management,…
The 2021 Invesco Global Factor Investing Study continues Invesco's research into global factor investing, a form of investing in which securities are chosen based on attributes that have tended to offer favourable risk and return patterns over time.
The fear of global spread of the Delta variant overlaps with the second D, a deceleration in economic growth already in process, both in the U.S. and China. The EZ, in contrast, is still climbing the hill, with the peak likely to be reached in the next one or two quarters, lifted by the periphery, in an inflationary…
Each quarter, 'Factoring It All In' offers insights into how factors perform across broad equity markets. In each piece, Wells Fargo AM analyses the most recent quarter through a factor lens, focusing on five key style factors along with market performance. This quarter, they look at the 'unintended tilts' factor: the impact…
The overall direction of BlackRock's strategic tilts has remained stable amid a noisy macro backdrop. Market sentiment has swung between extremes since their last update in May as fears of runaway inflation gave way to concerns over deflationary spirals in the matter of a few months. These swings reflect – in their view –…
Owing to a combination of strong demand as many economies restart post-Covid-19 lockdowns, and widespread supply bottlenecks, inflation has been surging in many parts of the world. While there are good reasons to expect this surge could be transitory, many investors are concerned that inflation may well remain higher than…
Intangible assets have always been part of the economic landscape. In this study Dimensional Fund Advisors examines the impact of internally developed intangibles on the ability to identify differences in expected stock returns in U.S., developed ex U.S., and emerging markets. Their research does not find compelling evidence…
Value as an investment style is enjoying a revival. After being described as moribund by some, T. Rowe Price started to see a rotation from “growth” to “value” in late summer 2020, accelerating in November on the news of Pfizer’s Covid‑19 vaccine. The outperformance of value has continued year‑to‑date, as economies have…
