The Value Perspective is an extensive resource for providing information on 'value investing' in equities. Value investing is a proven, long-term approach which focuses on exploiting swings in stockmarket sentiment, targeting companies which are valued at less than their true worth and waiting for a correction. We aim to share the thoughts, opinions and passions of five experts in this field, along with independent commentators, providing greater insight into this often poorly understood area of equity investing.
12 Dec 2013
The idea of a central bank offering ‘forward guidance’ as an insight into its thinking on policy areas – particularly interest rates – is a relatively new one for the UK. The practice was introduced here only this summer by the freshly installed Bank of England governor Mark Carney, who had himself used it back in 2009 in his previous role as governor of the Bank of Canada.
6 Dec 2013
Concerns that income-generating assets are looking expensive are by no means restricted to the fixed income sector. Since dividends are in themselves a form of valuation metric, it may feel like something of an oxymoron to suggest high-yield stocks could be expensive and yet, at least in some parts of the world, that now appears to be the case.
4 Dec 2013
In his 2012 best-seller Antifragile: Things that Gain from Disorder, Nassim Taleb divides the world into three categories. Things that suffer in stressful conditions he describes as ‘fragile’ and those that are largely unmoved or unchanged by stress are ‘resilient’. For those things that actually thrive or grow stronger as a result of stress, meanwhile, Taleb has coined the term ‘antifragile’.
3 Dec 2013
Here on The Value Perspective we may occasionally come across as a little dogmatic on the subject of investing but that is very much on the ‘how’ rather than the ‘what’ – in other words, providing you adhere to the tenets of value investment, we are happy for you to spend your money where you like. That said, the following observation from a recent Financial Times article offers pause for thought.
29 Nov 2013
A little while back, in Hybrid society, we highlighted how businesses across a range of sectors are increasingly turning to so-called ‘hybrid’ bonds as a way of raising capital. More recently, in articles such as Fever pitch, we have offered our thoughts on the re-emergence of other credit instruments such as covenant-light loans, collateralised loan obligations and PIK Toggle bonds.
28 Nov 2013
The number of foreign-born footballers plying their trade in England can be an emotive issue, not least when it comes to debating the health of the national team. Even so, it would be tough to make the case that playing standards across England’s foremost division have suffered.
26 Nov 2013
The surprise loss of the right to broadcast Champions League football matches from 2015 after being outbid by BT may have been a high-profile blow to BSkyB but was it really the terminal one a number of market commentators have portrayed it to be? The work BSkyB has done over the last five or so years to diversify its offering on three different levels would suggest otherwise.
21 Nov 2013
The recent decision of Royal Bank of Scotland (RBS) to spilt its assets across so-called internal ‘good’ and ‘bad’ banks has generated a huge amount of commentary and coverage but if, as we prefer to do here on The Value Perspective, we step back for a moment and take a longer-term view of the situation, has anything actually changed?
18 Nov 2013
At its heart, value investing is about buying £1 of assets for less than £1 and one area offering plenty of discounted assets is the world of investment trusts and other closed-ended funds. Unlike open-ended funds such as unit trusts and Oeics, shares in closed-ended funds hardly ever reflect the true worth of their underlying portfolio of investments – the so-called ‘net asset value’ (NAV).
12 Nov 2013
To the surprise of many (and the consternation of some well-established fund managers), so-called ‘peripheral’ European markets such as Spain have been to the fore in the recent upturn in the continent’s economic fortunes. One way of hedging out the risk of this trend continuing being discussed by some investors is to ‘buy Spain’ – but how do you go about doing that in practical terms?