As we discuss the various subjects that determine our investement policy, inflation, interest rates, the COVID affect, valuations, etc - we must continually remind ourselves we are long-term investors, at least with the biggest part of our portfolio. Therefore, we need to caution ourselves to not time markets, or fall for the CNBC watching mentality of the day-to-day.
As such, there will always be geo-political influences on our markets and economy, as now with the Russian overtures with Ukraine, on-going China aggressions, and our own socio-political landscape in the US . Further, when we wrap these up in the pandemic world we are in, with the economic broader topics of inflation and interest rates (whether caused by COVID, influences in the overall economy, or whatever) we need to keep a longer term approach to managing our portfolios.
At the same time, drawing on "techniques" to find alpha, while managing risk is a constant, yet shorter term part of managing portfolios. This is keeping an eye on valuations (PE structures), use of themes, evaluation of sectors, style allocation etc...
The "stock-of-the-day" approach is tempting, just watch CNBC or any financial news network or program and you see that. But gathering data and information may be a great idea, becoming a short, even mid term trader is not the answer as we manage our potfolios.
Gather data, look at research, look for alpha, manage risk and extra cost to the portfolio (taxes and fees), but primarily stick to fundementals- asset allocation, rebalancing, and long-term planning.
Charter Capital Advisors Research - Blog 1/25/22