Marc Gerstein

Marc Gerstein is an unconventional "quant." He has long specialized in rules- and factor-based equity-investing strategies. And he authored two books on stock screening – Screening the Market and The Value Connection. Marc's quant inclinations trace back to his early days as an attorney (mainly criminal and landlord-tenant proceedings). In that world, everything Marc did had to be supported by evidence or legal authority. He first applied this evidence-oriented approach at Value Line, an independent investment-research firm that he joined in 1980. There, he learned to relate human investment stories to that company's "Timeliness" ranking system. During the mid-1980s, Marc managed the Value Line Aggressive Income Trust. That's a high-yield ("junk") bond open-end mutual fund. He steered the fund through the Drexel Burnham scandals and the related junk-bond storms. He came away from that experience with a non-academic but highly reality-based understanding of risk.

Wall Street Is Preparing for a Storm

The “smart money” is on the move… Regular readers know we’re referring to institutional-level traders and fund managers. They’re the big guys in the investing world. So it’s critical for us to always know what they’re doing. And right now, these smart-money traders are piling into one group of “defensive” stocks – consumer staples. These …

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How to Avoid the ‘Amazon Bear Trap’

Editor’s note: The markets and our Chaikin Analytics offices will be closed Monday, January 17, to commemorate Martin Luther King Jr. Day. Because of that, we won’t publish the Chaikin PowerFeed e-letter. Look for your next issue on Tuesday, January 18. We’re all human… We all make mistakes. But that doesn’t mean we should accept …

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The Sad Story of an Amazon Short-Seller

A big difference exists between being wrong… and understanding why you’re wrong. Consider the case of “Larry Smith”… That’s a fake name for a real person with whom I’ve crossed swords over the years on a well-known, investment-focused website. It all started back in December 2011… Larry stated his case for short-selling Amazon (AMZN) in …

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This Stock’s High Yield Is Less Risky Than It First Appears

If you’re searching for high yields, you’re bound to look into real estate investment trusts… Historically, they’ve offered some of the most attractive yields in the market. But as we learned in our “prudent yield hog” series a month ago, it’s naïve to just chase high-yielding stocks without doing a little bit of additional work. …

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Rebels Get Glory… But Followers Get Money

Defying convention makes for great fiction… Legendary playwright William Shakespeare’s Romeo and Juliet is about a pair of young lovers who do just that. They go against their two families’ wishes and fall in love. In the end, Shakespeare’s masterpiece became one of the greatest pieces of fiction ever written… And 425 years later, it’s …

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These Two Industry Stalwarts Avoid the ‘High-Yield Cliff’

“Perfectionism rarely begets perfection, or satisfaction – only disappointment.” Those words of wisdom come from New York Times bestselling author and The Daily Stoic podcast host Ryan Holiday. They serve as a great lesson for investors, too… We all want to own shares of rapidly growing companies with other appealing traits. We seek great balance …

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In Investing, Fashion Kills

It’s not always fashionable to go with what’s “hot”… Sure, stocks can go on incredible runs when they first catch investors’ eyes. The COVID-19 pandemic provided two examples… Work-from-home superstar Zoom Video Communications (ZM) soared from about $70 per share at the start of 2020 to around $570 per share by mid-October 2020. That’s a …

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