Good Values Getting Harder to Find
Over the course of the past few years, even when the broader stock market indices appeared to get ahead of themselves, I was always able to locate certain individual issues and sectors that appeared to offer reasonable risk-adjusted investment merit from the long side. In recent days, I have found little success in such searches.
This morning, I studied the most recent research report from Bank of America Merrill Lynch's U.S. Equity and Quant Strategy Group. On the basis of several factors, the group identified consumer staples and technology sectors as those to overweight and named materials and financials as those to underweight. Since my focus is on identifying stocks to own, I began a very cursory investigation of the staples group by looking at the charts of the current members of the Consumer Staples Select SPDR (XLP), along with a few fundamentally derived summary statistics. What an eye-opener!...562 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.