In the first part of the book, Katsenelson examines the historical performance of U.S. markets over the past two centuries and discusses what has caused prolonged bull, bear, and range-bound markets. He then looks at the emotions that have dominated each of these markets, why there is a high probability that a range-bound market has descended on us, and what you can do to forecast how long this market will last.
Part Two of Active Value Investing addresses practical application of this concept. Here you’ll become familiar with performing proper stock analysis—from identifying what constitutes a good company to determining the stock price at which these companies become worth owning— and implementing an active investing strategy during range-bound markets. You’ll also be introduced to the Quality, Valuation, and Growth (QVG) framework, which lies at the core of this approach. Rounding out this section are detailed discussions of the buy/sell process as well as complete coverage of important risk and diversification issues.
Range-bound markets may be difficult to invest in, but with Active Value Investing as your guide, you’ll quickly learn how to squeeze real profits out of a difficult market full of exhilarating highs and surprising lows.