Stick to the Fundamentals – Avoid the “Noise”

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Stick to the Fundamentals – Avoid the “Noise” | Blog |

What are the fundamental elements of investing?

  • You evaluate a potential investment by; assessing the business, understanding the business’s value potential, your ability to add that value, and your potential return on investment.

Does that change based upon what anyone says?

No, it does not.

Despite the situation for day traders, where news does dictate price momentum, all other situations are based upon the fundamentals.

When you analyze an investment, you will always make your decisions based upon your understanding of that business’s fundamental performance.

Ultimately, this is a combination of the business’s operation and it’s financials.

  • Location is another important factor.

Yes, there are other components of how the price of a stock can be swayed nowadays with the whole meme stock situations like with AMC Entertainment and GameStop.

  • As defined on Investopedia, a meme stock refers to the shares of a company that have gained viral popularity due to heightened social sentiment. This social sentiment is usually due to activity online, particularly on social media platforms. These online communities can dedicate heavy research and resources toward a particular stock. Meme stocks often have heavier discourse and analysis in discussion threads on websites like Reddit and posts to followers on platforms like X (formerly Twitter) and Facebook.

Despite, these unique scenarios, all investments are based upon the fundamentals of how that business is performing and how it could perform.

So, let’s get started with a few topics occurring today for you to consider.

Disclaimer: This is not investment advice. Do your own due diligence for any investment you are considering. This article is for educational purposes only.

Economic Changes

An downtown block shows closed businesses and construction taking place.
Stick to the Fundamentals – Avoid the “Noise” | Blog |

There are several economic changes underway and many of them are already occurring and will continue to occur in the foreseeable future.

Paying attention to the changes as they are happening, and staying knowledgeable on forward planning, is vital to your investment decisions.

Always use basic principles to determine supply and demand in conjunction with that investment’s forward planning.

  1. Real estate is short on supply in much of the world.
    • Therefore, real estate will be a good investment provided you evaluate the fundamentals.
  2. Many countries are emerging while others are falling.
    • Therefore, forex currency trading will be a good investment provided you evaluate the fundamentals.
  3. The world is targeting a conversion from oil as an energy source to electric energy, in addition to many countries having a high demand in commercial and residential property development.
    • Therefore, precious metals will be a good investment provided you evaluate the fundamentals.
  4. Much of the world is short supply on commercial and residential real estate.
    • Therefore, investing in home builders and developers will be a good investment provided you evaluate the fundamentals.
  5. Ecommerce isn’t a new story. But it is still leading the way for retail commerce.
    • Therefore, the profitability of retail arbitrage will continue to be a good investment provided you evaluate the fundamentals.
  6. Baby boomers are retiring at a rapid pace.
    • Therefore, long term care or health services related industries and the transfer of ownership of successful businesses will be good investments provided you evaluate the fundamentals.
  7. Many emerging countries that have less economic power in addition to some countries with power will support having a decentralized currency.
    • Therefore, crypto currency will be a good investment provided you evaluate the fundamentals.
  8. Marijuana is a slow growing industry, however many states are and will continue to adopt legal usage.
    • Therefore, marijuana will be a good investment provided you evaluate the fundamentals.
  9. The cycles of the cost of money being low and high has altered. As this is a fact, many companies will fail while others will prevail.
    • Therefore, there will be many great stock market investments with companies provided you evaluate the fundamentals.


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Stick to the Fundamentals – Avoid the “Noise” | Blog |

There are many investments that have high potential to provide a favorable return to any investor.

Evaluating the fundamentals will always be the deciding factors in whether you invest or not.

No matter what anyone says, these are facts.

Do not let “noise’ distract you from staying focused.

Provided you understand the fundamentals of any investment you choose, you are equipped to make good business decisions.

Thanks for joining us today faithful readers – future leaders.

Love ya and continue to strive for growth.

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