03 Jan 2017 Heartland Advisors: Investing with Optimism ( Portfolio )

The meteoric rise for equities has left valuations for many stocks inflated. The value of U.S. common stocks is near historic highs versus gross domestic product. These high valuations are particularly alarming given that the money flowing into equities has mostly gone to flavor-of-the-day passive products. Many of these index funds blindly buy stocks based on market cap with no regard to fundamentals. To us, that sounds more like speculating than investing...