1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

David Dreman: Value Keeps Steaming On

January 13, 2006 | About:

David Dreman is happy with the fact that for the sixth consecutive year, value stocks outpowered growth, with the S&P Barra Value Index appreciating 3.5% last year compared with 2.5% for the S&P Barra Growth Index. What should we look for during 2006? I expect a reasonably good one with the S&P 500 rising 10% or more."

He wrote: "Stocks tend to get hurt by inflation in its early stages, but then they catch up after the first year or so of an ascending Consumer Price Index. I think we are at this inflection point now.

With few exceptions every one of the stocks I write about is held in the portfolios I manage. This is known as putting your money where your mouth is. In most cases these are long-term holdings.

The news from companies is encouraging: Earnings should continue to increase. Large-size issues, which have trailed mid- and small-cap stocks for five years, should outpace them this year. Large-caps are much cheaper at this stage of the cycle.

http://www.forbes.com/columnists/business/forbes/2006/0130/122.html


Rating: 1.0/5 (1 vote)

Comments

Please leave your comment:


GuruFocus Mobile App Available


Select portfolio(s):

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK