PT  - JOURNAL ARTICLE
AU  - Martin Fridson
AU  - John D. Finnerty
TI  - Is There Value in Valuation?
AID  - 10.3905/jpm.2013.39.2.087
DP  - 2013 Jan 31
TA  - The Journal of Portfolio Management
PG  - 87--91
VI  - 39
IP  - 2
4099  - https://pm-research.com/content/39/2/87.short
4100  - https://pm-research.com/content/39/2/87.full
AB  - It seems self-evident to many investors that valuation is the key to picking winners in a sector-rotation strategy. The authors’ analysis of quality tiers within the high-yield bond market casts doubt on that premise. The market’s direction exerts such a big influence on relative returns that limited room remains for valuation to have an impact. In light of the authors’ findings in the speculative-grade debt market, value-oriented investors in other asset categories may also need to rethink their assumptions.TOPICS: Fundamental equity analysis, in markets, information providers/credit ratings