Opportunity Through Insight

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

People’s opinion of a company’s future potential is a key factor upon which the stock market is built. Therefore, as an analyst, it is important to not only understand the fundamentals and the strategy of companies in which you are looking to invest, but also how the rest of the market is viewing the stock’s prospects. This level of understanding will help interpret abnormal swings in a stock’s price to determine if it is simply an irrational reaction to a given event or a sign of larger issues.

In a previous post, I wrote about the non-measureable aspects of stock analysis and human emotion is one of the largest, unquantifiable factors driving movements in market prices. Having the insight to separate irrational price movements from the pack is a key factor that can lead to positive future investment performance.

I’ve come to learn that much of Wall Street is very short-term oriented, which can lead to these types of price movements. A classic example is when a company enters into an investment phase to develop new products, expand into different geographical markets or update its technology infrastructure. These spending programs are often needed to transition a company to its next growth phase, typically a good thing to invest in. However, this pressures a company’s growth prospects in the short term shares generally take a beating.

These types of situations are opportunists we love to find for our clients, but require a thorough understanding of the company’s growth strategy and insight to gain confidence. This also requires a longer time horizon and likely an above average risk tolerance, both in exchange for outsized potential returns.

facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Should I Open a Traditional or Roth IRA?

Multiple retirement savings vehicles are available but having options can be overwhelming. Each option comes with different rules leading to a variance of outcomes in the short-term and long-term. It’s not that dissimilar to choosing what to eat.

Carson Investment Research’s Outlook ’23: The Edge of Normal

At long last, The Carson Investment Research team is proud to officially release our 2023 Market and Economic Outlook, aptly titled Outlook ’23: The Edge of Normal. You can download the whitepaper here. As you are all painfully aware, 2022 wasn’t pretty for investors – it was the first year …

What Documents You Should Provide to Your Tax Preparer

Mike Valenti, CPA, CFP®, Director of Tax Planning Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner It’s January, so it’s officially tax season! One of the most common client questions heard by tax preparers is, “So, what do you need from me?” The short answer to that question is often, “ …

10 Tax Planning Tips That Could Reduce Your Taxes

There’s more to tax planning than you think. Do you understand how each of your accounts are taxed? How did you set up your retirement plan? Have you considered an HSA? Take control of your taxes and how they fit into the big picture. Check out these income tax planning tips. Click here to …
1 2 3 94 95 96

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation