article 3 months old

Your Editor On Switzer: ‘Cheap’ Does Not Equal A Bargain

FNArena Talks | Mar 31 2015

Investors are too focused on finding “cheap” stocks in the Australian share market, argues FNArena Editor Rudi Filapek-Vandyck. He points out there is one very good reason as to why “cheap” stocks end up being “cheap”. They have a problem. Many “cheap” stocks have not performed well throughout the years behind us, he observes, occasional brief rallies notwithstanding.

On the other hand, stocks that do perform and do so consistently end up being “expensive”. But does this make them a bad investment proposition? The FNArena Editor disagrees that “cheap” is always better than “expensive”. As a matter of fact, he announced investors can now invest in a Model Portfolio that is based on his research into All-Weather Performers. This Model Portfolio has performed well since inception in late 2014. And none of the All-Weather stocks involved is “cheap”.

To view the broadcast, click HERE

Past broadcasts can be viewed via the Investor Education section on the FNArena website: https://www.fnarena.com/index2.cfm?type=dsp_front_videos

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms