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Investing in Range-Bound Markets

May 23, 2010
Here is my article on range-bound markets in NAPFA magazine:

Investing in Range-Bound Markets by Vitaliy N. Katsenelson (published in NAPFA Magazine)


Vitaliy Katsenelson

[contrarianedge.com]

About the author:

Vitaliy Katsenelson is Director of Research at Investment Management Associates and teaches at the University of Colorado. To read more of his articles visit www.ContrarianEdge.com . His book Active Value Investing was published by John Wiley & Sons in September 2007.

Visit Vitaliy Katsenelson's Website

What Worked in the Stock Market for Long-Term Investors?

Extensive research has found that the companies with predictable revenues and earnings outperform the market average; they also suffer lower probability of loss. As a matter of fact, this kind of companies are exactly what Warren Buffett wants to buy and hold forever. Please read the research about what worked in the stock market:

Part I: What worked in the market from 1998-2008? Part I: Predictability Rank
Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety


Rating: 4.3/5 (4 votes)

Comments

superguru
Superguru - 2 years ago
Excellent article. could not agree more. Great points about sell discipline and asking for more margin of safety and keeping in cash if no good opportunity presents itself.

IMO, Dividend will be important part of returns in next decade. I think energy companies like XOM would be a good investment at this point given the good yield and inflation concerns few years down the road.

(disclosure : Long XOM)
DocMoney
DocMoney - 2 years ago
Right on about the dividends. This will probably be true even with the new increased taxes on them. I look for meaningful, rising dividends with a low payout ratio.

Please leave your comment:


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