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Sector Valuations

Sep 08 2021

Technology Stocks: Dance Like Nobody’s Watching

  • Sep 8, 2021

In the middle of the last decade, we marveled at the Tech sector’s ability to flog the rest of the market quarter after quarter, with no meaningful breakout in valuations. Specifically, the median Price/Cash Flow ratio for S&P 500 Technology managed to “hug” the 15x level for about four years beginning in late 2013. Tech’s post-COVID boom is nothing of the sort.  

Nov 06 2020

Weight Watcher—Another Look At Sector Valuation

  • Nov 6, 2020

There are numerous ways to measure sector valuation, but we found the simplest one: sector weights. Overall, using simple sector weights, we arrive at the same conclusions about sector valuation as one would using conventional valuation metrics.

Dec 07 2017

Sector Rotation: Momentum Versus Valuation Factor

  • Dec 7, 2017

For sector overweight/underweight decisions, applying a Momentum overweight with both EM and DM countries has been most successful.

Jun 07 2017

A Contrarian “Late-Cycle” Play?

  • Jun 7, 2017

The Amazon Effect masks both the underperformance of the average Discretionary stock and the relative value that’s been reestablished across the sector. “Discretionary ex-Amazon” is a better contrarian pick than Energy.

Aug 05 2016

No Sector On Sale...

  • Aug 5, 2016

While cap-weighted U.S. indexes remain far below their 2000 valuation highs, in some ways today’s market presents an even more difficult hurdle for value managers.

May 08 2015

Paying Up For Stock Market “Leftovers”

  • May 8, 2015

It’s well known among market professionals that value investors are congenitally grumpy (for example, the retired keeper of our Undervalued & Unloved stock screen went by the internal nickname of  “Eeyore.”) Worse yet, bad market conditions have lately combined with value managers’ bad genetics to make them an especially unhappy lot, even by their own dour standards.

Mar 06 2015

The Bull Market Turns Six

  • Mar 6, 2015

The bull’s 72-month lifespan now rates as the fourth-longest among all 23 DJIA bull markets since 1900, and the cumulative price gain of +179% ranks sixth.

Jan 08 2015

Thoughts On Energy

  • Jan 8, 2015

The recent Energy sector decline has accomplished the feat of wiping out all of the upside gains achieved during its “Third Act” played out in the 2006-2008 surge.

Dec 05 2014

Gruber The Guru?

  • Dec 5, 2014

Last month’s tactless comments from MIT health care economist Jonathan Gruber contained an (accidental) investment nugget we’ve alluded to several times in the last three years (and, no, it does not relate to the “stupidity of the American voter” or investor).

Aug 07 2014

Sector Valuations: A Top-Down Look At Risk & Opportunities – Predicting Relative Returns

  • Aug 7, 2014

Cheapest three sectors on a relative basis: Info Tech, Health Care, Energy

Jul 08 2014

Energy Sector Heating Up

  • Jul 8, 2014

We’ve been negative on commodities and most commodity-oriented equities for the last three years, believing that the magnitude of the ramp-up in commodity production capacity over the last decade remains generally underappreciated by investors.