NEW YORK (TheStreet) — Plenty of academic studies show that unloved value stocks have outdone high-priced growth shares over the long term. But value has struggled lately. During the past five years, the Russell 1000 Growth index has returned 4.1% annually, while the Russell 1000 Value lost 1.6%. Value also trails for the past decade.
Growth stocks have led partly because financials account for a heavy weighting in the value benchmark. During the financial crisis, banks and insurance companies were crushed, and they still sell at low multiples compared to historical levels.
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See the original post: Why Value Funds Could Lead the Markets
NEW YORK (TheStreet) — Weitz Funds can boast about some strong long-term track records. During the past 15 years, Weitz Partners Value returned 9.7% annually, outdoing the S&P 500 by 3.6 percentage points and topping 97% of large blend funds, according to Morningstar. Weitz Value also produced stellar results, returning 8.8% and surpassing 98% of peers in the large value category.
But the Weitz funds are only for patient shareholders. Diehard value investors, the Weitz managers take stocks that have delivered disappointing earnings or fallen out of favor. As a result, the funds sometimes trail the markets for long periods. In 2008, both Weitz funds lagged most of their peers.
For many investors, the best choice may be one of the company’s younger funds, Weitz Partners III Opportunity (WPOIX). Partners III outdid most peers in 2008. During the past five years, the fund topped Weitz Partners Value and Weitz Value by 3 percentage points annually.
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Go here to see the original: A Weitz Fund That Wins in Downturns
NEW YORK (TheStreet) — Plenty of financial advisers are worried about inflation. High oil prices are hurting consumers, the advisers say, and heavy spending by the Federal Reserve could trigger inflation in coming years.
To protect against rising prices, the advisers suggest a traditional approach — holding assets such as real estate investment trusts, gold and Treasury Inflation-Protected Securities. That strategy has often worked in the past, but the favored assets have all surged in recent years and now prices look rich.
Consider REITs. During the past three years, real estate funds returned 31.3% annually, ranking as the top-performing category tracked by Morningstar. As real estate shares climbed, yields fell. Now the average REIT yields 4.3%, near the record low of 3.8%, which occurred during the bull market of 2007.
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Go here to see the original: New Ways to Guard Against Rising Inflation