The September assault on record levels is prompting many stock investors to shift toward value assets, which have trailed in recent years.
Source: Value Stocks Beckon Investors in Aging Bull Market – WSJ
The Rotation from Value into Growth May Have Much Further to Run. According to J.P. Morgan, the recent ” rotation into Value from Momentum/Low Vol that began ..was one of the largest 3-day Momentum-Value rotations in over 30 years (99.8%-ile), and will have much further to run.
We find this exhilarating as value investing is basically what The Insiders Fund does as there is no better value buyer than the corporate insider buying his own stock when he perceives it to be cheap.
The Insiders Fund focuses exclusively on what insiders are buying and selling. Portfolio manager Harvey Sax has deployed this strategy since 2001 with 4x return of the market during that time. I believe it’s a particularly good time to look at this fund.
Warren Buffett would be the first to tell you that emerging fund managers can often outperform legendary investors such as himself because smaller size funds have so many more opportunities to move the needle.
The window for October investments closes on the 1st. We are finding many values in the midstream oil and gas sector with yields over 9%. This is extraordinary considering the level of interest rates. Unless you think the internal combustion engine will be obsolete in the next 10 years, these investments will pay for themselves in dividends alone.