Every portfolio needs adjustment from time to time, as the market lives and changes.
Does it mean an investor should always be in the loop? Yes. Does that mean they have to monitor the market’s state day and night? No.
Read on to find five handy tips for managing your time properly.
1. Daily: track important news only
Tracking market gossip and rumours every day is time-consuming, let alone unnecessary. Instead of hot tips, focus on credible information sources. Be aware of the market shape, concentrate on the news related to interest rates changes and updates on commodities prices and labour costs.
What are the dependencies? Firstly, stock prices drop whenever interest rates rise, and vice versa. Secondly, commodities and fuel prices influence stock prices as well. For example, oil companies always feel better when oil prices are higher. And thirdly, rising labour costs inevitably push stock prices down. If you know all the above-mentioned interdependencies, you can be more efficient at tracking important news and decision-making.
2. Weekly: keep up with the weekend reports
There’s no point in following financial media every single moment, reading or watching them once a week will be just enough. Print or web magazines and TV shows on finance are sources of handy hints about investment strategies and expert opinions on the market direction.
Stay up to date with the weekend market reports. They give general overviews of the market’s health that matters a lot for portfolio management. Make sure that you grasp the major changes in industries, rather than dive deep into details. Additionally, don’t draw inferences from the data or comments arriving day-to-day. They are not about the big picture or long-term trends, and are usually dramatised or glossed to get viewers glued to screens.
3. Quarterly: study financial reports
Be aware of the company’s latest performance, risks and opportunities and focus on its financial statements. Publicly traded companies have to bring their fundamentals to light. Sometimes numbers and financial reporting become the main language to communicate with stock investors.