Skip to content

Low P/E

Jan 08 2021

Low P/E Track Record

  • Jan 8, 2021

Financials was the “cheapest sector” in each of the last three years, and its significant underperformance versus the S&P 500 has shaved the historical “alpha” from this strategy. Still, those souls who’ve had the stomach to own the Low P/E sector each year have beaten the S&P 500 by 2.9% per annum since 1991.

Jan 08 2021

For Value Investors Only!

  • Jan 8, 2021

With the Bridesmaid approach we’re attempting to capture “stealthy momentum,” rather than pure momentum. Fundamentalists—and especially value investors—might find that to be a distinction without a difference. 

Jan 08 2020

Low P/E Track Record

  • Jan 8, 2020

The “robustness” of the “Cheapest Sector Strategy” concept is illustrated by strong results across all rebalancing frequencies.

Jan 08 2020

For Value Investors Only!

  • Jan 8, 2020

With the possible diminution of “alpha” in price momentum strategies, we recommend that sector allocators consider approaches that are more countertrend or contrarian in nature.

Jan 08 2019

Bridesmaid Strategy - Valuations

  • Jan 8, 2019

Momentum strategies aren’t for everyone. Still, contrarians should recognize that buying the prior year’s worst performing sector for a one-year hold has been an underperforming proposition over the long term.

Jan 07 2017

Low P/E Sector: Annual Results

  • Jan 7, 2017

Table 6 summarizes annual sector selection and accompanying performance for the “Cheapest Sector” strategy back to 1991.

Jan 07 2017

Hate Momentum? Try This...

  • Jan 7, 2017

Not wanting to be seen as shameless shills for momentum investing, we’ve developed a contrarian alternative to the Bridesmaid sector approach that’s delivered even better long-term outperformance. It’s based on the holy grail of value investing: Low P/E.