Insider Buying Hits Nine-Year High as Stocks Sink
to Bear Market
Fastest-Ever Bear Market Opens Book on Century of
Bottom Fishing
Share prices fall hard in recessions. It is tricky
to take advantage
“A good stockpicker will have a watch list: a roster
of company shares she would like to own should they become cheaper during the
current sell-off. Market sages, tapping their nose, boast that they plan to
load up on “quality stocks” at good prices when the stockmarket really tanks.
If only life were that simple. Quality stocks (companies with a business model
that is hard for rivals to emulate) started off dear and are only a little less
so now. Meanwhile unloved value stocks, which sell for a low multiple of their
profits, have become even cheaper. Such firms are in industries whose long-term
prospects look bleak—banks, carmakers, oil firms and so on. Owning them has
been an unrewarding experience. Their profits will be crushed by travel bans,
supply-chain snarl-ups and the like. But their cheapness will push bolder
investors to take a look.”
How 2 Quants Are Betting on What’s Working, and Against What Isn’t
How 2 Quants Are Betting on What’s Working, and Against What Isn’t