as retired investment banker who started his career as a Wall Street trader in the late 1980s, I often post about the “deal” fallacy.Whether you want to do it yourself, or Pay a “system” or “tip” from some social media shy who just “Start Trading” Years ago(and may soon venture into other areas), It simply doesn’t work. But if you’re still not convinced (actually, well, never accept anything on the surface), I suggest you start here
We effectively debunked Self-proclaimed “trader” does not exist use in a Better equipped, better educated, better prepared, better capitalised and better motivated professionals. Motivation is a great topic: I remember my first Low six-figure bonuses. That year I effectively have been living in the bank, Sleeps at my desk and only comes home once or twice a week.However, after seeing my bonus I immediately vowed to spend more time at the bank. Yes, money is like that to people.compared to The shy who claims to make huge profits by “trading an hour a week”, No less than (lol) at the beach or coffee shop. I call bullshit. But anyway,
Despite the social media Shysters claim that buy and hold is the single most effective strategy, you will find it used by almost everyone high net worth (high net worth individuals) and ultra high net worth (Ultra high net worth) individuals.but you just can’t buy randomly selected stocks Or, worse, you shared “Hearing” or “Getting a tip” about. No, you need to make decisions based on news and information.It’s not hard and
it’s something Marketing professionals do this, That’s why if you visit the trading floor or watch video clips from it, you will notice a lot wall mounted monitor, Show news almost 24×7. return Professionals will keep reading the news and broadly, considering the impact of the event, and Find ways to make money. Over the past year or so, both market-focused news and mainstream news have been largely dominated by three themes:
1) energy cost trend higher
2) Russian energy withdraws from the market, limited supply, recently
3) US Inflation Reduction Act Encourage clean energy
is all Three themes work together Create a great investment opportunity that many will only seize later.Since you’ve read this far If you’ve just finished this article, you’ll know. but as a
I need to see data. In other words, what is a company In the energy sector? How are they doing? We are interested in energy, in particular, energy to be driven go ahead Recent U.S. policy, clean energy. Administration legislation is almost always a gold mine, and Mr Biden’s recent policies must be scrutinized
We will use iShares Global Clean Energy (ICLN) as a valid filter to help us select companies for our analysis. ICLN is the largest single exchange-traded fund ETF in the space. ICLN’s holdings are detailed on yCharts. For brevity, I have selected ICLN holdings A weight of 5% or more of the fund’s total holdings.I dropped Vestas Wind Systems A/S, ticker VWS, at 6.12%, simply because It’s listed on The Pink sheets, not the main exchange and, Personally, I don’t like We’re seeing less liquidity in the OTC market. The chart below shows The performance of each stock over the past two years, Benchmarked against the S&P 500.
The table below summarizes each selected company, %weight It is included in ICLN, and 2023 forward price-to-earnings (P/E) ratio. This
ICLN’s total holdings could be well over a third of this major ETF.i also joined weight per stock at ICLN and its P/E multiple Based on Wall Street analysts’ 2023 consensus earnings.Next, let
where we noticed all these stocks is showing impressive returns in the past two years compared to the S&P 500. Actually The five stocks rose an average of about 140%, while the S&P 500 gained an average of 16.62% in the same period. Looking at the price-earnings ratio, we see All of these stocks trade above the S&P 500. so
Well, the stocks look good, but You are not ready to buy. need further analysis before purchasing.I would recommend you read any news or analysis you can find.return you need to think about changing In analysts’ near-term earnings forecasts, such as the next quarter and into 2023.please remember
In the past quarter, expect it We may continue to see further downgrades. but considering Changing energy needs and legislative incentives, this sector may be a good choice For buy-and-hold investors.Remember, buying and holding means
because we are investors From a long-term perspective, no trying to be a trader with short-term prospects. If you choose the industry and the stock correctly, you can fully expect the stock price to rise over time. So you have no compelling reason to sell. After all, why are you selling?
Y did some quantitative analysis. You do some qualitative analysis. Don’t worry if it sounds like a lot of work; it will get easier over time.
You are following the news. well done.