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
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…
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…
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…
Stock market bubbles fascinate researchers because bubbles have major implications for market efficiency, but their existence is disputed. This book evaluates academic research and other analysis of bubbles and their significance for investors.
How can investors capture the most important opportunities of the next decade? Thematic investing places structural change at the heart of a long-term equity portfolio and, in Lazard AM's view, can enhance returns, mitigate risks, and enable sustainability integration. It is time to change how we think about equity portfolio…
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 (…
Franklin Templeton explore the traditional benefits of a balanced portfolio between stocks and bonds and continue to see this as the most likely path toward stable potential returns, even as bonds remain expensive. Major themes such as cyclical rebounds, policy bias and the continued search for alternatives are further…
Having been outperformed by U.S. equities over the longer term, the time may now be right for the international asset class to bounce back, as Client Service Director Stephen Corr explains.
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,…
How should investors position their portfolios after more than a decade of disappointing value returns? Is it time for a style rotation, or can investors look within value and growth stocks for reliable capital appreciation and income? This paper by Capital Group explores further.
The question of ‘concentrated ownership’ has gained importance as a few large, passively managed vehicles such as Exchange Traded Funds (ETFs) hold a greater share of many highly traded securities. There is clearly a new type of nonfundamental risk premium emerging because of this growing concentration. With the growing…
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 (…
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…
Inflation has remained dormant for a long time, with years of below-target and weak inflation, but markets are now reaching a delicate juncture where inflation is taking the driver’s seat in financial markets. Whether this is just temporary or will prove persistent is the crucial question and at present, there are two…
It is well established that active equity collectively underperformed its passive counterpart over much of the last 10 years. Some of this underperformance can be attributed to the many closet indexers that are included in the “active” equity universe. What is not so well known is that active funds have gone through extended…
In this global investment outlook, Franklin Templeton's investment professionals across asset classes share how they’re thinking about portfolios amid continued market uncertainty.
Over the past three decades, a sustained surge in inflation has been absent in developed markets. As a result, investors are faced with the challenge of having little evidence on how to reposition their portfolios in the face of heighted inflation risk. The authors provide some guidance by analysing both passive and active…
