MHh
2022-04-13

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!

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • SHU.tan
    2022-04-14
    SHU.tan
    may I know which healthcare ETF would you consider?
    • MHh
      I think XLV is one of the more popular or well-known one. Haven’t done my homework to compare them yet[Sigh]
    • MHhReplyMHh
      It is the largest and gives the better or best dividend although dividend really isnt the main aim
  • StaQ
    2022-04-13
    StaQ
    is it working well for you?
    • MHh
      Not too bad just that US stocks are too expensive for me to buy
  • DiAngel
    2022-04-13
    DiAngel
    Well written.. we r the opposite. Hence we attract one another 😂🥰😘. I bought pharma.
  • Joelchua
    2022-04-14
    Joelchua
    Thanks for sharing
    • MHh
      Thank you[Smile]
  • SweetieLook
    2022-04-13
    SweetieLook
    posting as nedrd
  • RDPD富爸穷爸
    2022-04-13
    RDPD富爸穷爸
    Good sharing with a clear define plan 😊👍
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