Active Value Investing in Sideways Markets – Vitaliy Katsenelson

Vitaliy Katsenelson is the author of Active Value Investing: Making Money in Range-bound Markets. In this article I have shared a presentation that he made at a conference recently.

What is Vitaliy Katsenelson discussing?

We are used to talking of bull and bear markets respectively. He broadly focuses on sideways markets.

For example what we have been seeing since 2007 to 2013 in India. The Sensex or Nifty have moved up and down but are roughly in a range. This would be a sideways market.

He studies the US markets over the long-term. In bull markets buy and hold works well. More important than stock specific selection it is important to “be present” in the market. In sideways markets on the other hand he argues that one should change strategy. There should be strict entry and exit points in your investments. Staying in cash if you have got nothing compelling to buy is better. Cash is an under-performer in bull markets in comparison.

I have read his book “Active Value Investing – Making Money in Range-Bound Markets“. It is a good book albeit expensive.

He shares the core topics in this book through this presentation. Many charts that he discussed in the book have been incorporated in this presentation.


Vitaliy Katsenelson’s presentation


If you have trouble viewing this presentation, download the presentation. I feel you should download anyway. It is worth re-reading.


What are your thoughts on this presentation?

Let me know. Use the comments section below. What have been your experiences in the Indian stock market?

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