A $28 billion strategist flags the multi-trillion-dollar roadblock keeping investors from the stock market’s most hidden gems — and explains his strategies to outsmart it

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 51%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Many investors are missing out prized stocks because of this flaw, according to Alger's Brad Neuman.

is over, the plant will return to producing 100,000 cars again, increasing its profits and stock price as a result.

What has changed over the years is that investments in intangible assets have superseded investments in tangibles, Neuman said. A higher share of spending is assigned to intellectual property, marketing, training, human resources, and other items that don't appear on balance sheets as assets like machines do. Such intangibles are written off as expenses instead.

He cited video gaming as one such sector. If spending on ads for new games were to be capitalized on gaming companies balance sheets, their price-to-book-value ratios would fall from 4x to 3x, Neuman said. That example constitutes the first of two approaches Neuman recommended to update the definition of"value" as it exists in various indexes and ETFs. It's labor intensive, and involves understanding the value of assets, as well as products in the research and development pipeline, that are not expressed on a company's financial statements. An example is the value of Google's search algorithm, Neuman said.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 729. in BE
 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

The chief market strategist at $1.3 trillion investing giant reveals the hidden red flag that can signal a recession months in advanceQuincy Krosby, the chief market strategist at Prudential Financial, weighs in on the signals she's watching in preparation for the next recession. Like what is going to happen later this year ?
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Skittish investors pull more than $20 billion from stocks, rush into bonds: BAMLGlobal equity funds saw massive outflows this week, a sharp reversal from last w... The long-term indentured bullet bonds sold on WallStreet are in truth no safer than equities or stocks. Companies take on too much debt to accept investors' offer of easy money on credit, but ultimately the Establishment LowInterestRate mantra from federalreserve cuts no ice. Thank the fed chairman opening his mouth again. Can’t have healthy economy and low rates. Could have fooled us.
La source: Reuters - 🏆 2. / 97 Lire la suite »

As worries about populism in Europe rise, investors bet on stock market volatilityInvestors are betting on heightened political uncertainty and greater volatility... Please stop calling Fascists and Racists 'Populists' it puts a veneer of respectability on an evil that doesn't deserve it.
La source: Reuters - 🏆 2. / 97 Lire la suite »

Investors are missing out on this stock market comeback, and that could fuel it furtherThe strong stock market performance to start 2019 has yet to lure most investors back in from the sideline, implying that more gains could be ahead. Should of bought the dip in December. Still in defensive positions now?
La source: CNBC - 🏆 12. / 72 Lire la suite »

A Wall Street strategist who called the last stock plunge says investors are foolishly ignoring one thriving corner of the marketEd Clissold of Ned Davis Research, who called the December stock sell-off, says there's an overlooked middle class thriving in the stock market.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Stock market winners list so far this year features odd bedfellows in 'FANG' and utility stocksStocks that act more like bonds are what investors prefer at the moment. Orthodontist tells me you can fix a FANG by putting having braces installed
La source: CNBC - 🏆 12. / 72 Lire la suite »