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

President Trump signs an executive order to freeze federal employee pay in early-2019.

Rose Prince

2019-01-06 08:39:00 Sunday ET

President Trump signs an executive order to freeze federal employee pay in early-2019.

President Trump signs an executive order to freeze federal employee pay in early-2019. Federal employees face furlough or work without pay due to the govern

+See More

The Trump fiscal trifecta of lower income taxation, new infrastructure, and deregulation has yet to run its natural course.

Becky Berkman

2017-04-25 06:35:00 Tuesday ET

The Trump fiscal trifecta of lower income taxation, new infrastructure, and deregulation has yet to run its natural course.

This nice and clear infographic visualization helps us better decipher the main memes and themes of President Donald Trump's first 100 days in office.

+See More

The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations.

Dan Rochefort

2023-03-28 11:30:00 Tuesday ET

The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations.

The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations. Peter Conti-Brown (2017)

+See More

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Jonah Whanau

2023-08-14 09:25:00 Monday ET

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009. Peter Isard (2005) &nbs

+See More

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Alphabet Google (U.S. stock symbol: $GOOG).

Becky Berkman

2025-09-18 08:03:32 Thursday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Alphabet Google (U.S. stock symbol: $GOOG).

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund

+See More

Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends.

Joseph Corr

2020-10-13 08:27:00 Tuesday ET

Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends.

Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends. Carsten Linz, Gunter

+See More