he Investment Grade Value Stock Index is a barometer of a small but elite sector of the stock market. Some Investment Grade Value Stocks are included in all averages and indices, but even the Dow Jones Industrial Average includes several issues that are below Investment Grade and very few boast an A+ S & P rating.
Author: Steve Selengut
Before Wall Street and the media combined to make investors think of calendar quarters as “short-term” and single years as “long-term”, market cycles were used as true tests of investment strategies over the long haul. Bor-ing.
I think it was the immortal Ben Hogan who quipped: I can put “left” on the ball and I can put “right” on the ball— “straight” is essentially an accident. Most amateur golfers would make a slightly different observation. We can hit the ball left or right with no problem; we just have no idea when either will occur.
Investment markets got you down, Bunkie? Been blown away by derivative stun guns? When will portfolio market values move back to 2007 levels— and then what will you do about it?
Is it luck or skill that gets us to the goals and objectives we set for ourselves— gimmicks and software programs or practice and understanding? How many golfers are still using the putter they started with decades ago at a nine-hole cow pasture? How many of you are still bouncing between investment gurus and hedges in your search for the investment holy grail?
The Working Capital Model (WCM) looks at investment performance differently, less emotionally, and without a whole lot of concern for short-term market value movements. Market value performance evaluation techniques are only used to analyze peak-to-peak market cycle movements over significant time periods.
Annually, quarterly, even monthly, investors scrutinize their performance, formulate coulda’s and shoulda’s, and determine what new gimmick to try during the next evaluation period.
While everything is down in price, as it is now, there is actually less to worry about. When the going gets tough, the tough go shopping.