Not exact matches
Yes as some point cash will be an
undervalued asset as it gives you a call option if /
when stocks fall.
To quantify benefits of timing value spreads, they test monthly time series (in only
when undervalued) and rotation (weighted by valuation) strategies across
asset classes.
A smart investment strategy is to hold a diverse collection of different
assets that are not well - correlated with each other, and invest into them
when they become
undervalued.
When a stock is selling at much less than its net current
asset value, this fact is always of interest, although it is by no means conclusive proof that the issue is
undervalued.
In a technical analysis,
when the price of an
asset has fallen to such a degree that an oscillator has reached the lower bound, the
asset is generally considered
undervalued.
You can lower your risk by purchasing
assets that are
undervalued and selling
assets when they become overpriced.
BVF made a shrewd investment
when it recognized that Avigen's
assets were severely
undervalued after the negative clinical trial results reported last October.
'' It was a very shrewd policy in the 50's and 60's,
when there were highly inefficient markets: buying
undervalued assets, running them for cash and selling off pieces.
They succeed in the present,
when you score a sweet deal on an
undervalued asset.
When buying an
undervalued asset it may make sense to use a variable rate while you are improving it.
Adam Smith, the grandfather of modern economics, said
when an
asset is
undervalued, the «invisible hand of the market» corrects the pricing to fair market value.