The Edge Encourages Investors to Look Outside Their Own Backyard for Value.
The Edge recognizes this is a difficult environment. That's a given, but how do you make money when everything isn't just going up with the market? Here are a few things to look out for.
Be open minded in your sources. There are some great Global names that will be profitable and outside your comfort zone. (see below for Rolls Royce).
Ignore media attention to stocks. The chances are you will be the last in. Make it so that your source of ideas is original and unique where possible.
Don't let the market panic, anxiety and fear get the best of you. Our stance hasn't changed. Markets continue to head south and I certainly sense the start of some 'fear' in the broader market.
Back in April 2014 (click here), I posted the below chart that my team helped me to articulate.
I indicated we were entering the M&A phase. That was the optimism point on the graph. Now I believe we are at the denial point. Everywhere I read and all the other noise (media) around indicates reasons to buy. Most are in denial of the fact we have corrected. The very fact that every rally is sold off is giving you a clue.