Tactical versus Strategic Allocations to Value
SUMMARY
INTRODUCTION
Although buying cheap stocks is intuitively appealing, holding them is highly unappealing for most investors. Value stocks tend to be companies that lack growth, require balance sheet restructuring, feature incompetent management, need a new corporate strategy, are rated “Sell” by brokers, or have some other issue. Effectively Value investors provide a service to the market by holding undesirable stocks.