 |
How to Research Stocks
Where to Look
These days, the problem isn’t so much where to find information,
but which resources to choose from among the millions of print,
broadcast, and online media available.
Research Factors
The following are factors to look for when researching a stock:
- Lasting trends: don’t fall for the flavor of the
month, 6 months, or even the year.
- Growth-oriented industries: for example, based on aging
demographic trends, it’s reasonable to believe healthcare
and pharmaceutical industries will perform well in the future.
- Go against the grain: take a look at which market sectors
are out of favor and find good buys that you believe will
rebound.
- International politics: a presidential election or governmental
coup can make or break a country’s economy, so if you’re
considering any foreign investments, investigate the region’s
internal stability.
-
Rising popularity: if a company is already overvalued
and doesn’t have the balance sheet to justify its inflated
price, pass on it even if your neighbor claims he’s
making a killing.
- Buying from the inside: when you see companies buying
up their own stock, it’s often an indication of its
confidence in management and product or services and that
it’s poised for larger market gains.
|
|
