Category Archives: Industry Rotation

Industry Ranks May 2014

My main industry model is illustrated in the graphic. Green industries are cold. Red industries are hot. If you like to play momentum, look at the red zone, and ask the question, “Where are trends under-discounted?” Price momentum tends to persist, but look for areas where it might be even better in the near term. […]

An Idea for When the Market is High

Last night I was at the Towson University International Markets Summit.  I’m grateful to the students for inviting me, as it is an honor.  During the presentation, I mentioned the book “Accounting for Value” by Stephen Penman.  I reviewed the book two years ago.  A great book, and one that should lead readers to modify their […]

Industry Ranks February 2014

My main industry model is illustrated in the graphic. Green industries are cold. Red industries are hot. If you like to play momentum, look at the red zone, and ask the question, “Where are trends under-discounted?” Price momentum tends to persist, but look for areas where it might be even better in the near term. […]

On Investment Ideas, Redux

Would I disclose proprietary ideas of mine?  I’ve done it before.  Why would I do it?  Because it would take a lot to make the ideas usable.  Remember my commentary from when I was a bond manager: I was far more open with my brokers than most managers, but I never gave them the critical […]

A Different Look at Industry Attractiveness

While doing some work today, I ran across this resource from Morningstar. Morningstar values stocks by projecting the free cash flows of the companies, and discounting those free cash at a rate that reflects the riskiness of the company.  Free cash flows are the amount of cash you can take from a corporation over a […]