RT Journal Article SR Electronic T1 Is There Value in Valuation? JF The Journal of Portfolio Management FD Institutional Investor Journals SP 87 OP 91 DO 10.3905/jpm.2013.39.2.087 VO 39 IS 2 A1 Martin Fridson A1 John D. Finnerty YR 2013 UL https://pm-research.com/content/39/2/87.abstract 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