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Phases
Top-Down Economic, Business and Financial Market Analysis
This first phase involves using a big-picture analysis that gives us insights into the current stage of the U.S. business cycle and allows our team to develop themes that will define market investment directions going forward.
Sector and Industry Group Selection
Based on the strategic themes developed in the first phase, we identify market sectors that should outperform as stages of the current economic cycle unfold, and determine which sectors could underperform. The second phase is complete when our team assigns relative sector weightings for each theme.
Fundamental Company Analysis and Security Selection
In the third phase, we analyze potential companies in the desirable sector and industry groups, with a focus on traditional value — price/book, price/sales, forward and trailing P/E — as well as fundamental measures such as estimated and historical long-term earnings growth, and analyst revisions. We favor underpriced stocks that feature emerging positive fundamental prospects.
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