|The PRICE versus VALUE PARADOX SOLVED!
|Irrationality and 'underbelly' feelings! How could it have been possible at the end of the previous century on the peak of the stock market, that almost everyone remained blind for persistent signals. Even high level warnings about 'irrational exuberance' did not help. Like lemmings even judicious people jumped at the stock exchange to seize the opportunity. Intelligent marketing, new products and guided information turned everyone out into shares. Nobody wanted to miss the fun! Supervisors did not really want to spoil the party by acting as spoil-sports and they remained on distance. The indicators were nevertheless clear. The risk premium ran into very high altitudes and the discount rate accordingly. An objective analysis would have shown that the value of almost all shares stayed way below the stock exchange price. Nevertheless everybody continued to buy and almost nobody sold.
|Can a monkey beat the stock market? This fairy tale luckily has never been well proven. The details of the crash of the stock market end previous century and of earlier crashes, show however that it could well have been possible. The problem is that up to now not any technique, investment consultant, investment fund or portfolio manager has been able to prove his capacity to outperform the index systematically and over a longer time frame. And yet the challenge to beat a monkey, should be possible for human ingeniousness. In any case it is a worthy challenge!
|Can a winning method ever exist? If a winning method would exist, everyone would use it of course, thus the theory sounds. The stock price would adapt itself to the winning method value. The predicting strength of the method is thus reduced to irrelevancy. The question is whether that theory will remain valid amidst so much communication noise, cupidity and irrational motives. The question is also whether just one unique method may exist amidst so many conflicting human driving motives and conceivable rational methods. If there ever could exist a rational equilibrium on the stock market exchange by one or more unique method(s), that winning unique method would remain extremely valuable in all cases if it really has the power to repress so much communication noise, cupidity and irrational motives!
|Ratio, software, objective and verifiable analysis! The problem with the predicting monkey, 'underbelly' feelings and irrationality is that no verifiable methods exist to put them in the wrong. The product F-Valuation software however, makes ratio + software + objective and verifiable analysis go hand in hand. The available results indicate that it is possible to outperform the index thus becoming a unique and winning method. Only when everyone uses the product F-Valuation software, stock market prices will keep floating around a rationally interpretable level.
|Participate in the challenge! Compared to other techniques and methods the costs and efforts to apply that unique and winning method are relatively small. Most efforts go automatically. The most cumbersome part is the final selection of shares to buy or to sell from the pre-selection made automatically by the system. Then your own subjective estimations and information, must be compared with the estimation of the system. That plus-value should always be contributed by yourself. The great efficiency advantage is that the effort to create that plus-value only needs to be applied on a restricted selection of shares and not on the universe.
|Beat the stock market with little costs and efforts! If you want to take up that challenge, mail then to
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