Wallflower Value Stocks Are Ready to Dance

Global equities are notching new highs, valuations are elevated and talk of market bubbles is increasingly common. Yet, by our measure, the potential for outperformance in value stocks has rarely been better. How can that be?

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Don’t Pull the Plug on US Stocks

Investors are wondering whether the bull run in US equities is over. With the economy gathering steam and interest rates likely to head higher, we think stocks are still the best game in town—and value stocks neglected in the recent rally look even better.

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Value Stocks Beckon in Emerging Markets

Henry D’Auria (pictured) and Morgan Harting Years of playing defense have left many emerging-market (EM) equity portfolios laden with pricey safe-haven stocks. We think they risk missing the big opportunity that’s brewing in value stocks, especially as EM economies begin to stabilize.   

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Getting Back into Value Equities

It finally feels like a great time to be a value investor again. After several challenging years, market conditions have become much more conducive to finding undervalued, controversial stocks with long-term payoff potential. Even after this year’s equity-market rally, we think the value rebound is just beginning.

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Sector Distortions Can Be Costly in Passive Investing

Joseph G. Paul (pictured) and Kevin Simms Passive investing strategies that emulate an index have become increasingly popular. But passive investing can go awry when sector concentrations leave investors exposed to unintended risks.

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Finding Healthy Stocks in Europe’s Troubled Landscape

European equity markets continue to face severe stress as the continent struggles to contain fallout from the sovereign-debt crisis. Yet this seemingly toxic environment is creating some exceptional investment opportunities in relatively healthy companies that can control their own destinies.

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Does Behavioral Investing Make Sense Anymore?

Kevin Simms (pictured) and Joseph G. Paul Value investing has faced a crisis of confidence after five tough years. Here’s why we think the behavioral investing principles that underpin the discipline are more relevant than ever.

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Equity Market Distortions Create Big Payback Potential

Joseph G. Paul (pictured) and Kevin Simms Even after this year’s equities rally, market imbalances created by the financial crisis in 2008 have not disappeared. When these distortions unwind, we expect deep value stocks to rapidly recover.

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Value Investing and the Philosopher’s Stone

Kevin Simms and Joseph G. Paul When J.K. Rowling finished her first manuscript of Harry Potter and the Philosopher’s Stone in 1995, she submitted it to 12 publishers, who all rejected the book. In time, those publishers would regret missing the chance to back an unknown author who would later take the world by storm. Like [...]

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Finding Value in Australian Equities

Investors in Australia have piled into defensive stocks since 2010, amid a global flight to safety. As a result, many cyclical companies are now unusually cheap, despite strong balance sheets and cash flows, and this has created a compelling opportunity.

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