I use earnings to identify performing companies. I buy depending on price, regardless ofseason.
During earnings seasons, prices are volatile. In general, good earnings drive prices up and makes it expensive to buy. Lousy earningsdrive prices down and then one need to lookinto the reason(s) for lousy earnings. If the reason(s) are temporal, then maybe one can consider a buy-in. Otherwise, I might even remove from my watch list.
In this current fearful market, prices are even more volatile. Rate hikes, war, inflation and supply chain disruptions due to war or theCovid situation at China are all reasons to drive prices down independent of earnings or the company's fundamentals. So, i will be using earnings to relook at the companies and wait for a good price to buy. As an investor, I hardly sell unless I want to trim my portfolio or temporarily take profit.
I will not be rotating sectors. Given my investment horizon and the sectors that I buy, i should have sufficient time to ride out the volatility. Energy, commodities, individual pharmaceutical companies are examples of whatI will never touch. Pharmaceutical companies can be considered defensive regardless ofthe situation but I will only consider ETFs.
So, I do not have grand plans yet. It all depends on the price!
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