The search for the most attractive investments usually leads to high-quality businesses, with wide margins, high returns on equity, strong balance sheets and attractive valuations. The four broad investment styles — value, quality, growth and income – are all based on some variation of the above factors.
One set of companies that is generally avoided by most investors are the least efficient, low-margin companies with business models that rely on government subsidies or other public sector initiatives.
Paying Too Much For High-Quality Stocks: The Chief Hazard To Investors
However, a new research presentation by Macquarie puts forward the idea that these businesses could become the most attractive investments as central banks reach the limits of conventional monetary policy and fiscal policy is...
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