Hot List Newsletter

Most Recent Hot List Issues

3 most recent issues require subscription. Historical issues can be viewed free of charge.

3/6/2020

Validea Hot List

The Importance of the Sector Story

Investors often overlook the importance of the sector in the outcome. For value investors, being underweight technology and overweight financials during a period when growth-oriented tech stocks were booming and financials were lagging explains a large amount of their struggles. In this issue, we look at the importance of looking at the sector story when analyzing the market.
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Best of the Hot List

12/31/2018

Validea Hotlist

Best of the Hot List - 2018

The 2018 Best of the Hot List includes thoughts on what gambling can teach us about investment process, how to mentally prepare for bear markets, and how to know when your investment process has failed. We also discuss common mistakes factor investors make and why you should never trust "sure thing" market indicators.

12/31/2017

Validea Hotlist

Best of the Hot List - 2017

The 2017 Best of the Hot List includes thoughts on why value investors need mental toughness, a look at how Warren Buffett views market valuations, and a discussion of the two most important decisions that drive investment returns. In addition, we take a look at the importance of discipline in investing and why investing based on headlines can be so dangerous.

12/31/2016

Validea Hotlist

Best of the Hot List - 2016

The 2016 Best of the Hot List includes ideas from David Dreman on why analysts' predictions are like powerball tickets, insights from Peter Lynch on what investors can learn from the Maya and a discussion of what elections mean for long-term investors. In addition, we take a look at combining value and momentum for a winning strategy and review the dismal track record of stock market forecasters.

12/31/2015

Validea Hotlist

Best of the Hot List - 2015

The 2015 Best of the Hot List includes articles about our overall guru investing system, value investing, and why our guru inspired models work over time. In addition, we discuss the importance of having an investment game plan, provide commentary on the optimal number of stocks for a portfolio and discuss what we have learned in over a decade of following quantitative strategies.

12/31/2014

Validea Hotlist

Best of the Hot List - 2014

The 2014 Best of the Hot List includes articles about lessons investors can learn from the market's ups and downs, value investing's long term market outperformance, the importance of having a plan when investing, and how to mentally prepare for the next market decline.

12/31/2013

Validea Hotlist

Best of the Hot List - 2013

The 2013 Best of the Hot List features articles about the difficulty of trying to time the market consistently, why the simplest approach to investing is often the best, and how the market is always a "stock-pickers" market.

12/31/2012

Validea Hotlist

Best of the Hot List - 2012

The 2012 Best of the Hot List includes articles about how a contrarian mindset can give investors an edge, why an investing "mission statement" is important for many investors, and the importance of a consistent sell discipline.

12/31/2011

Validea Hotlist

Best of the Hot List - 2011

The 2011 Best of the Hot List features articles about the important metrics to use when valuing the market, the importance of looking at debt when analyzing the attractiveness of a stock investment, and how tuning out the market noise can help you become a better investor.

12/31/2010

Validea Hotlist

Best of the Hot List - 2010

The 2010 Best of the Hot List includes articles about why style and size based investing will often serve to limit returns, how emotion and discipline during times of market volatility are key to long term performance, and why the stock market and economy are two different animals and can often behave differently.

12/31/2009

Validea Hotlist

Best of the Hot List - 2009

The 2009 best of the Hot List features articles about ahy being bullish after the financial crisis was an easy call to make for long-term investors, despite the fear in the market, the importance of the philosophy - "don't fight the Fed", and why investors should ignore those who predict the death of equities.

12/31/2008

Validea Hotlist

Best of the Hot List - 2008

The 2008 Best of the Hot List includes articles about why stocks have consistently been the best way to build wealth over the long-run, why fear can present opportunities for long-term investors, and the market's returns under Democratic presidents.

12/31/2007

Validea Hotlist

Best of the Hot List - 2007

The 2007 Best of the Hot List features articles discussing whether a sell discipline is more of an "art" or a "science" and the selection process behind the strategies we follow.
Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.