Five Ways to Find Value in the Market

1. Core Portfolio
Having a core portfolio of shares based on ideas suggested by brokers is a strategy that suits anyone who does not have the time to research their own ideas.
The portfolios are reviewed weekly. There are 12 to 14 suggested shares in each and investors can either replicate a package sat 50 to 60 percent and invest the balance in shares of their choice.

e.g. Core Value Stocks
ANZ,
WBC
TLS
TAH
WDC
WES
AIX
CDO
MXG
HSP
PBL

2. The Warren Buffett Strategy.
A Good low stress starting point is to identify companies with business that appeal to you. But once you have applied this filter, it becomes more technical.
An Investment valuation indicator you may then consider is Return On Equity.
The core of the Buffett style is to put together a portfolio of companies where you understand what the business does and are happy with the products or services it offers.
If the shares deliver a good and consistent reurn on equity, this will flow through to the share price.

3. Techincal Analysis
Technical analysis means plotting share price indicators on a graph and interpreting the chart according to defined rules.
Charts also show volatility and allow you to avoid shares that are all over the price.
Th best technical tools in a sideways market are oscillators such as the so-called Relative Strength Index (RSI) and the Stochastic Oscillator.
The most effective strategy is to trade more frequently than you would in a steadily rising market when you might buy and hold stocks.
Momentum traders look for stocks that are rising significantly on high volume.
Technical Indicators based on Moving Averages tend to be best when a market is in a momentum trend.
The reason oscillators are used in ranging markets is that overbought situations are likely to reverse lower, and oversold situations can results in a price bounce.

4. The Contrarian Dividend Strategy.
At the beginning of each year, an investor following this strategy buys the shares with the 10 highest dividend yields from a recognised index (in US is Dow Jones).
The shares are held for a year, and then the process is repeated.
The equally weighted portfolio was made up of shares in ANZ, SGB, NAB, CBA, TLS, FOA, TEN, ALN, LEI and AWB.
The logic is that you are buying big companies with well-known brand names that are out of favour, hence they are described as DOGS.
Some event has caused the share price to drop, which means that the historic dividend yield is high.
By buying the shares when the dividend yield is high, you are buying when the price is low and if you hold them for a year this will give them time to recover.
LOCAL DOGS
SGB
ANZ
NAB
CBA
TEN
TLS
QAN
PPX
WAN
BLD

5. Rule of Thumb Investing.
It compare shares by focusing on information in company reports such as P/E Ratio, EPS, dividend yield and cash-flow analysis.
Shares are overvalued if the P/E ratio is significantly greater than the average for the sector in which the company operates. There is another rule involving the PEG - Price Earning Growth Ratio.

Top Stocks
TAP
COA
BKL
OSH
BOL
FXJ
TIM
BHP
BBG
OST
TEN
RIN