The Reformed Broker: When Mechanics Trump Fundamentals

By on August 31, 2009

Joshua Brown points out another reason not to listen to mainstream pundits. Those who weren’t advising to go to cash early in the year were probably telling investors to stick with those companies catering to the lowest common denominator; i.e, Walmart, Family Dollar, and Costco. This just before their severe underperformance versus stocks with business models focused on the upper crust (i.e., Starbucks, Saks and Coach).

SMA Comment: When anything is trumpeted too widely from the gurus and pundits, it is probably advisable to go in the opposite direction.


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