There have been debates between those who argue for momentum and mean-reversion.? I say, “Why Choose? You can benefit from both.”? Stock performance tends to persist after 12 months of outperformance, and tends to mean-revert after 48 months of underperformance.? Tonight’s screen reveals 33 stocks that were in the bottom quartile over the last 4 years, but in the top quartile over the last year, with market capitalization over $100 million.

A few of the larger stocks I look at here like Citigroup and AIG make me sick, but that is a part of the exercise.? If you don’t? get a “gag reflex” from some stocks as a value investor, you may not be taking enough risk.? I am certainly not a fan of the financial guarantors, but they are here.? They survived, at least for now.

I would would consider the following stocks to be a “disbelief” portfolio.? High risk, high opportunity.? There are few people that wake up in the morning and say, “This is the portfolio that I want to own.”

Too many financials.? Too many overlevered, dodgy companies.? But maybe they will do well over the next month.? The probabilities favor it, but I will try to measure it over the next month.? Portfolios that outperform rarely look normal.