Earnings Season, What to Make of It?
Earnings season is a good time to reflect on your stock picks but is there more beyond reflection? That would depend on the type of investor you are, but long-term investors need not worry about earnings season. Whether or not a company meets, beats, or misses an earnings expectation is certainly of interest to investors who bet on earnings. For short-term investors especially, an earnings miss might be an indication to sell a particular stock whereas an earnings beat might be a time to take profits and move on. Unfortunately, for short-term investors, building an investment strategy around earnings season or any other strategy that depends on earnings surprises requires more frequent trading.
Although frequent trading can be profitable with the right strategy, it typically means constant monitoring and more resources than long-term strategies. Oftentimes retail investors who opt for do-it-yourself investing become frustrated as they are continuously required to make buy or sell decisions. In the end, investors who have to frequently make these decisions grow tired and frustrated with the process and elect a more passive approach like buying an index fund and settling for below average returns after investment fees. As retail investors search for market beating strategies, simplicity has to play a large part in the strategy building process.
Building effective investment strategies take time and effort whether you are a professional or nonprofessional investor. After all, even the pros fail to outperform the S&P 500 or other indices with any consistency. While retail Investors simply do not have the time or energy, professional investors are not really attempting to outperform the indices as their efforts are focused on product sales and fee income. This leaves a large gap to be filled by idea generators who can provide effective investment strategies to retail or other investors interested in actually outperforming the equity-based indices with significantly higher returns and lower market risks.
At Investoristics, building marketing-beating investment strategies is our specialty, particularly for the do-it-yourself crowd that is tired of losing to the market indices. Retail Investors have built in advantages over all other investors if they can find the right idea generators or have the time and passion to build the correct investment strategy. As the market continues to be turbulent while it decides whether or not inflation will derail the economy, why not take measures to reduce your level of worrying. Let the team at Investoristics guide you through the market turbulence with fresh and creative ideas through our portfolio management newsletter. Get started today, call or contact us via email to find out more.
