Rational Advisor

I’d like to thank my good friends Lisa and Jamie for sending this link

I think you’ll find it interesting

attached is the link followed by the summary from me

http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=asNu6HYGu7eI

Value Stock Losers Poised to be Winners

- Value investors such as Bill Miller, Martin Whitman and David Dreman, who have experienced tough markets are poised once again to trounce the stock market.

- If history is any guide, the value investors’ emphasis on shares trading at low prices relative to cash flow and earnings will provide returns superior to the holdings of so-called growth managers.

- Growth investing, beat value strategies for the first time this decade in 2007 and by 15.5 percentage points so far this year, the widest margin since 1980

- The five prior times since 1952 that growth beat value two years in a row, the Value group recovered and won by 17 percentage points annually on average for seven years.

- Cheap stocks are becoming more attractive because of tumbling commodity shares, which had led the five-year bull market that ended in October,

- “This is one of the worst periods I’ve seen for value,” said Dreman, 72, who oversees about $15 billion as chairman of Dreman Value Management LLC in Jersey City, New Jersey. “The more it underperforms, the more it normally snaps back. The probabilities are very strong we’ll have a major upswing.”

Rational

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