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Historic volatility has shaken the stock market badly and pushed it to correction territory last week, with investors fearing the end of cheap money policy era due to higher inflation, faster growth and rising budget deficits. This has raised the appeal of value investing (read: Best and Worst ETFs of Last Week). This is especially true as value stocks have strong fundamentals — earnings, dividends, book value and cash flow — that trade below their intrinsic value and are undervalued by the market. (143-0)
Chicago, IL – February 6, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include iShares Edge MSCI Min Vol USA ETF (USMV - Free Report) , Nationwide Risk-Based U.S. Equity ETF (RBUS - Free Report) , PowerShares Russell 1000 Low Beta Equal Weight Portfolio (USLB - Free Report) , iShares Russell 1000 Value ETF (IWD - Free Report) and Vanguard Mid-Cap Value ETF (VOE - Free Report) . (5-0)
After a prolonged period of calm, Wall Street witnessed the biggest one-day drop in more than a year and the steepest weekly loss in about two years. Both the Dow Jones and the S&P 500 declined nearly 4% last week with a higher number of declining stocks. The number of declining stocks reached more than 27,000, the highest since at least July 2014 and the number of stocks hitting yearly lows reached 3,000, a number not seen since 2016.
For the second week in three, investors were net sellers of fund assets (including those of conventional funds and ETFs), withdrawing $9.6 billion. However, the headline numbers were a little misleading. Fund investors were net redeemers of money market funds, withdrawing $22.3 billion, but were net purchasers of long-term assets, padding the coffers of equity funds (+$9.1 billion), taxable bond funds (+$2.
While the year 2017 was great for the broader market, large-cap stocks clearly outperformed small caps. An uptick in the global economy and a subdued greenback, thanks to occasional policy uncertainty in the United States, and muted inflation led the way higher for large-cap stocks. PowerShares DB US Dollar Bullish ETF (UUP - Free Report) was down more than 8% in the past year (as of Jan 8, 2018). (12-0)
Backtested data shows that companies with below-average valuation levels and improving fundamentals tend to outperform the market in the long term. (5-0)
Buying undervalued stocks can be a powerful investment strategy, but it's of utmost importance to pick only cheap companies with improving fundamentals. (2-1)
After surging to peak levels, the Dow and the S&P 500 snapped an eight-week winning streak — the longest since 2013 — while Nasdaq ended a six-week winning streak. Meanwhile, the Russell 2000 logged its biggest weekly decline since August. The sell-off stemmed from concerns over the delay in the implementation of corporate tax cuts, which happened be the major driver of the recent stock market rally (read: 5 Biggest ETF Winners of Trump Trade Resurgence). (135-0)
What can be better than an undervalued stock? An undervalued stocks that is also showing improving financial performance. (172-0)
This investment style has the most fund offerings (966) and the second most assets ($1.3 trillion) of any investment style or sector.
Introducing a new value-oriented quantitative screen for subscribers in my research service: The Data Driven Investor. (171-0)
Tiaa, Fsb has disclosed 366 total holdings in their latest SEC filings. Most recent portfolio value is calculated to be $ 29,073,923,000 USD. Actual Assets Under Management (AUM) is this value plus cash (which is not disclosed). Tiaa, Fsb's top holdings are iShares TIPS Bond ETF (NYSE:TIP) , Vanguard Short-Term Bond ETF (NYSE:BSV) , iShares Russell Mid-Cap Value ETF (NYSE:IWS) , iShares Russell 1000 Value ETF (NYSE:IWD) , and iShares Russell 1000 Growth ETF (NYSE:IWF) . (10-0)
The broader market may remain sturdy, volatility levels may be hovering around the decade-low levels, but a trend of aversion in U.S. equities is building lately. Overvaluation concerns have long been a botheration to many investors (read: Dow at Record High: More Upside for ETFs?).
IVAL and QVAL are two ETFs which use an advanced strategy for picking value stocks with the highest quality, screening out companies with signs of financial distress and earnings manipulation.
"A 60:40 allocation to passive long-only equities and bonds has been a great proposition for the last 35 years ... We are profoundly worried that this could be a risky allocation over the next 10." - Sanford C. Bernstein & Company Analysts (January 2017)