According to Peter Hodson, CFA of founder and head of research of 5i Research Inc., investors are a worrying bunch: they worry about short attacks, Canadian/U.S. dollar spreads, CFO departures, insider selling, earnings expectations and hundreds of other factors. If you look hard enough, you can find dozens of things to worry about every single day on every single stock you own. There are only five things investors really need to concern themselves with:
1. Proper sector allocation
2. Interest rates
4. Insider buying
Now, you would agree not to load your eggs all into the same bucket. While interest rates definitely do have an effect on a lot of debt, earnings on the other hand do not always amount to increased share price. You see this time and time again. Watch your SEDI filings and check for insider buying – this is a must – if they are putting the money back into the company, there is a reason for it. Politics are always a tricky subject and do not always have an immediate effect in the market. Take a look at the cannabis sector right now in Canada for example.
You can see the original article “The only 5 things that should truly matter to investors Peter Hodson: There are only five things investors really need to concern themselves with. Everything else is just noise” here: business.financialpost.com