inefficiently priced value choices

PaulRen's picture

Stock investors like to talk about so called “value traps”. So called “Wall flowers” and others which just never flourish stock price wise.  Fair enough.  But the opposite is true as well -rarely explained!  Call them inefficiently priced value choices.  Where brokers and institutions alike only consider large cap stocks, ignoring the rest... a practice going for decades. Its because: these have the handicap requiring high share trading liquidity. Yet high net worth investors don’t have this same prerequisite and so have a true -long in making- pricing inefficacy, advantage! In Thailand this makes “toute la divergence” -as overall such pay double the SET averaged in dividend yields, often around 5% and have higher long term growth rates along with less volatility/correlation to Western markets.