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Showing posts with the label Value Investing

What is the Consumer Price Index (CPI)?

What is the Consumer Price Index(CPI)? The Consumer Price Index (CPI) is a measure of the change in prices paid by consumers for a basket of goods and services. It is one of the most widely followed economic indicators, and it is used by investors to gauge inflation and make investment decisions. How is the CPI calculated? The CPI is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys households across the United States to collect data on the prices they pay for goods and services. This data is then used to create a "basket" of goods and services that represents the spending habits of the average American household. The BLS calculates the CPI by comparing the prices in the basket of goods and services in a given month to the prices in the same basket of goods and services in a base year. The base year is usually 2000. How does the CPI affect investing? The CPI is an important indicator of inflation. When the CPI rises, it means that the cost of living is incre
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A New Perspective on Value Investing: Periodic Stock Rotation

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What is value investing? Value investing is an investment strategy that involves buying undervalued stocks and waiting for them to appreciate in value before selling. It relies on the ability to find undervalued stocks in the market. Value investing is popular with many investors, although at certain times there is more focus on growth stocks. However, value investing is recognized for its ability to generate long-term investment performance. Quantitative value investing Quantitative value investing is an investment approach that uses statistical and mathematical methods to identify undervalued stocks. It aims to use a scientific and objective approach to make investment decisions. New perspectives on value investing However, a new perspective on value investing has emerged: "periodic stock rotation". This perspective argues that value investing is not always about holding on for the long haul, and that periodic portfolio rotation can lead to higher returns than holding under
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