Sometimes the best places to invest are in the scariest assets that have experienced the largest declines. Historically bear market declines are followed by bull markets. The greater the market crash, the greater the market recovery that follows it usually is. This is what David Dreman called investor overaction, when the economy is growing investors bid up equity prices too high, and when the economy is sour and the future is uncertain the market overreacts on the down side. This phenomena occurs in all asset classes, however stocks are the most affected since they are more volatile than must other assets classes. This phenomena is not unique to the United States, numerous studies have confirmed that foreign Investors overreact as much as American investors. For example the Russian stock maket declined about 83% from its peak in May 2008 until February 2009. This made Russia one of the worst performing equity markets during that time period. However since February the Russian Stock market has gone up 173% making it one of the best performing equity markets.
Axon Capital Up 60% In 2020; Says These Tech Stocks Are Value Stocks
Axon Capital was up more than 60% for the first 11 months of 2020 after making some changes to deal with the year's challenges. In his delayed third-quarter letter to investors, which was reviewed by ValueWalk, Axon's Dinakar Singh noted that the year was not only "incredibly stressful" but also "successful." Q4 2020 hedge fund Read More
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