Investment Strategy
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Where can I get help choosing an investment strategy?
ValuEngine's strategy library contains several strategies that reflect varying investment objectives. They range from the aggressive for people with high risk tolerance to capital protective for investors more interested in getting income from what they have rather than in growth. These strategies together with our benchmark portfolios will provide you with an excellent starting point from which you may plan your own goals and structure pathways to success.

Should I buy a stock based solely on high-momentum ranking?
No. In fact, basing buy/sell decisions on any one variable is very dangerous. In this case, many stocks with high momentum rankings are also overvalued. As momentum ranking moves up, the overvaluation may move with it with a concomitant increase in risk. This is exactly the sort of trap that the ValuEngine Stock Valuation Model and its Model Price will help you avoid by integrating eleven variables into the valuation process.

Should I buy a stock just because it is undervalued?
Not necessarily. Despite good fundamentals, an undervalued stock can get stuck in that position for a long time, possibly because of human factors within the company or for any number of other reasons. However, undervalued stocks with a good momentum history could well be winners. Also, check the stock's forecast return and Sharpe ratio (the risk/return relationship) as part of your decision making process. Use the whole ValuEngine Stock Valuation Model. That's what it's there for.
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