As a firm with deep research roots, it has always been our goal to advance the discussion around valuation and help investors understand portfolio construction best practices to position their portfolios to outperform.
For you, our reader, we attempt to regularly compile our most relevant and compelling research/dialogue from all our media channels in one place.
Think of our newsletter like a menu from your favorite local restaurant… except every dish on our menu starts with the same two key ingredients (Valuation & Wealth Creation). While there are some other commonly used herbs and spices, the focus in our kitchen is always understanding how well a firm is performing and what it is worth.
Our head chef (co-founder) Rafael Resendes recently cooked up a few new dishes, one of which addresses many of the common myths surrounding the use of DCF models as well as how Applied Finance addresses some common pitfalls.
Mr. Resendes also took a trip to the “Resolve Riffs” kitchen to dish up some hot takes on the fundamental flaws of quantitative value and how Applied Finance improves upon traditional “value” approaches.
Speaking of heat in the kitchen… Jun Wang, CFA discusses her thoughts on the impact of inflation on the equity market and whether or not investors are cooked.
Derek Bergen, CFA and our quantitative analyst team dig into the expectations “priced-in” to FAAMG+TSLA and also reveals the secret ingredient to upgrading your allocation in the small cap space.
As inflationary pressures, increased volatility, and the long-lasting effects of Covid continue to dampen investor outlook it is even more important to stick to the recipe that has gotten us this far.
And as the old saying goes… if you can’t take the heat…
P.S. Don’t forget, we are hosting a webinar tomorrow @2pm EST on the investment landscape for US small cap stocks.
Learn about our Valuation Driven® investment strategies.
The Valuation Edge™ Newsletter Articles:
Rafael Resendes, co-founder of Applied Finance, provides his perspective on some of the common myths/misunderstandings as well as some insights from Applied Finance’s Intrinsic Value Database™ and provides our views on current market conditions.
Resolve Riffs Podcast
Rafael Resendes joins in on an engaging podcast with Resolve Asset Management’s Adam Butler, Michael Philbrick and Richard Laterman – Rafael discusses the fundamental flaws with Quantitative Value creating an Ah Ha! moment regarding wealth creation.
Looking Back & Forward
Jun Wang, CFA gives her thoughts on the economy looking at 2021 in the rearview and expectations for 2022.
Looking back: Both the US economy and corporate America earnings were much stronger in 2021 than initial expectations.
Looking forward: Equities will likely face volatility in the months ahead, however, higher interest rates are not a death spell to the equity market. Higher interest rates are good for the US economy right now, and what is good for the economy will eventually be good for corporate America.
Implied Expectations in US Megacaps
Derek Bergen, CFA provides an earnings preview of the biggest companies (FAAMG & Tesla) digging into the expectations priced-in to those stocks.
Investment Landscape – US Small Caps
Derek also provides an outlook of the investment landscape for small caps and helps identify quantitative trends that are impacting small cap allocations. These topics will be discussed in detail in tomorrow’s webinar.