One strategy for generating consistent alpha in a bear market is to buy the strongest stocks with the best growth metrics, given that this often suggests that they are under accumulation and likely to accelerate higher as soon as the weight is lifted off the market. However, another strategy that has stood the test of…
While most investors are focused on buying the dips in household names like (META) and Apple (AAPL), we are seeing a sea change under the market’s surface that could make this strategy less bountiful. This is based on the fact that after a nearly 11-year bear market in the Gold/Nasdaq ratio, the ratio looks to…
While the S&P-500 (SPY) has suffered a moderate bear market with a 28% peak-to-trough correction, the Gold Juniors Index (GDXJ) has suffered a real bear market, falling more than 60% from its Q3 2020 peak. This makes the Gold Juniors Index a much more fertile hunting ground for new ideas for those willing to be…
While bull markets can be exciting, they typically provide much less opportunity and make stock-picking much more difficult. This is because almost everything goes up in a bull market, regardless of quality, making it more difficult to separate the wheat from the chaff. Hence, bear markets are where the real opportunity lies to uncover future…
Warren Buffett, Joel Greenblatt, and Charlie Munger are some of the most successful investors of all time, and much of their fortunes have been amassed by buying great businesses when they’re on the sale rack. The tricky part about this strategy is that these high-quality companies rarely show up on traditional value lists from a…
The volatile market environment has made it more difficult for investors to generate positive returns this year. This is especially true for investors that chased growth in Q1 or focused on unprofitable stocks. However, one area that has outperformed after more than a decade of underperformance relative to growth is value stocks. The major benefit…
There are two optimal actions in a cyclical bear market… Hide from the volatility with an elevated cash position until there’s clear evidence of a market bottom, or find stocks that are cheap enough and are paying one to wait to justify putting hard-earned capital at risk. The problem? There is a dearth of these…
While sentiment for the general markets (SPY) has been trending lower over the past two months with a violent 15% decline from the August highs, sentiment for the Gold Miners Index (GDX) is in the incinerator and has rarely ever been worse over the past decade. This is evidenced by the fact that we have…
With the markets remaining turbulent and the S&P-500 (SPY) suffering a five-day rout that’s sent it down 6.5% and down over 15% in the past 30 trading days, it’s understandable that some investors might not be in the appetite to buy. Meanwhile, among those anxious to buy, they may be looking for stocks beaten up…
In a turbulent market environment, there are several strategies designed to outperform. Some of these include buying beaten-up high-beta growth stocks where sentiment is out of favor. A complementary strategy involves balancing this with deep value stocks trading at high free-cash-flow yields that are likely to be under accumulation. However, both strategies can translate to…
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