Frustrated equity investors looking to ditch the "monkey-and-a-dartboard" approach to stock-picking have been offered some new advice from a London-based private bank, which bases its approach to the stock market on the Spanish for "come on."
Using the acronym VAMOS, Mouhammed Choukeir, chief investment officer at Kleinwort Benson, said the approach represents three key pillars of his investment process focusing on VAluation, MOmentum and Sentiment.
"Valuation is identifying undervalued assets and avoiding those expensive ones. Momentum is participating with positive trends, so investing in those assets that are exhibiting those positive trending characteristics and avoiding the negative trends. And sentiment is the contrarian aspect, essentially going against the tide," he told CNBC Tuesday.
"If an asset is unloved, that's the time to pay attention and invest in it. And if it's exuberant and there's a lot of euphoria around it, that's the time to avoid it," he added.