Thursday, June 11, 2009

Minyanville article: Playing the Valuation Game

In this week's article for Minyanville I elaborate on the Fully Valued Market blog posting of Tuesday (see below) as well as describe the behavioral finance aspects of forward looking valuation analysis:

"After several months of glorious advances, stocks have stagnated of late. Trading in a largely narrow range, stocks appear to be searching for a reason to move. Some expect them to advance, while others anticipate, at best, a long-overdue (meaningful) correction, or, at worst, a test of the lows we saw last November and in early March of this year. Both camps can find plenty to support their points of view..."

"The 2 central points I'm attempting to make are these: First, like technical analysis, forward-looking valuation analysis contains the message of the market. Second, investors are better served debating the future, which is contained in the valuation message of the market, rather than the present or the past.

Market methodologies such as valuation analysis and technical analysis shift the focus away from..."

To read the complete Minyanville article, click here
To view all Minayanville postings, click here