Fundamental value investors find it more difficult to ferret out individual stocks.

James Campbell

2017-06-03 05:35:00 Sat ET

Fundamental value investors, who intend to manage their stock portfolios like Warren Buffett and Peter Lynch, now find it more difficult to ferret out individual stocks that currently experience substantial market undervaluation. During the current economic boom, a rising tide lifts all boats, especially for tech firms, banks, and energy companies. Written by Parnassus equity portfolio managers, this article seems to emphasize the general observation that most health care and biotech stocks seem reasonably cheap relative to most market benchmarks.

However, we believe it is not likely for these health care and biotech stocks to bounce back during the current Trump administration. President Trump seeks to cut medical costs and drug prices substantially in the next few years to make health care more affordable for the American middle class without Obamacare.

The resultant competitive landscape for these health care and biotech firms becomes a unique one with fewer moats across the pharmaceutical industry spectrum. This key motif serves as part of the broader mantra of Trumponomics.

This analysis draws investor attention to big banks with minimal financial stress (after they pass the Federal Reserve's macroprudential stress test), tech stocks with average P/E ratios well above 25x (especially for FAMGA aka Facebook, Apple, Microsoft, Google, and Amazon), and energy companies (such as PSX or Phillips 66 that Warren Buffett has included as a new value stock in Berkshire Hathaway's portfolio in recent times).

The law of inadvertent consequences counsels caution.


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Corporate investment management

Charlene Vos

2022-04-15 10:32:00 Friday ET

Corporate investment management

Corporate investment management  This review of corporate investment literature focuses on some recent empirical studies of M&A, capital investm

+See More

Disruptive innovations contribute to business success in new blue-ocean markets after iterative continuous improvements.

Rose Prince

2020-04-24 11:33:00 Friday ET

Disruptive innovations contribute to business success in new blue-ocean markets after iterative continuous improvements.

Disruptive innovations tend to contribute to business success in new blue-ocean markets after iterative continuous improvements. Clayton Christensen and

+See More

World Economic Forum warns that artificial intelligence may destabilize the financial system.

Jonah Whanau

2018-08-19 10:34:00 Sunday ET

World Economic Forum warns that artificial intelligence may destabilize the financial system.

The World Economic Forum warns that artificial intelligence may destabilize the financial system. Artificial intelligence poses at least a trifecta of major

+See More

USPTO fintech patent protection and accreditation

Andy Yeh Alpha

2023-01-03 09:34:00 Tuesday ET

USPTO fintech patent protection and accreditation

  USPTO fintech patent protection and accreditation   As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved

+See More

AYA fintech finbuzz analytic report on the global macro economic outlook Summer-Fall 2019

Andy Yeh Alpha

2019-08-07 08:32:00 Wednesday ET

AYA fintech finbuzz analytic report on the global macro economic outlook Summer-Fall 2019

Our fintech finbuzz analytic report shines fresh light on the current global economic outlook. As of Summer-Fall 2019, the current analytic report focuses o

+See More

Income and wealth concentration follows the ebbs and flows of the business cycle in America.

Amy Hamilton

2019-04-23 19:45:00 Tuesday ET

Income and wealth concentration follows the ebbs and flows of the business cycle in America.

Income and wealth concentration follows the ebbs and flows of the business cycle in America. Economic inequality not only grows among people, but it also gr

+See More