How to Read Financial News: Tips from Portfolio Managers

by finandlife10/08/2016 08:18

Three Questions to Ask

Is the article based on data or opinion?

Is it descriptive of past conditions or predictive of the future?

Does the article have a testable hypothesis?

Best Practices

Understand the Consensus

Seek Disagreement

Question the Narrative

Respect the Data: Charts, tables, and numbers are good places to start for corporate results and economic data. Always check the primary source when possible. “My models are based on data, so I prefer charts to commentary,” Gerstein noted.

Avoid Partisan Interpretation: Turn off your political bias when you read and interpret the news, and be wary of commentators who have political agendas.

Develop Your Own Framework: Before you read the news, you must have your own framework in place for decision-making. Otherwise, you’ll be unduly influenced by what you read. As Ed Stavetski, founder of PCM Partners LLC, put it, “You must have an independent view of the markets or the media will force a view upon you.”

 

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DISCLAIMER

I am currently serving as an Investment Manager at Vietcap Securities JSC, leveraging 16 years of experience in investment analysis. My journey began as a junior analyst at a fund in 2007, allowing me to cultivate a profound understanding of Vietnam's macroeconomics, conduct meticulous equity research, and actively pursue lucrative investment opportunities. Furthermore, I hold the position of Head of Derivatives, equipped with extensive knowledge and expertise in derivatives, ETFs, and CWs.

 

To document my insights and share personal perspectives, I maintain a private blog where I store valuable information. However, it is essential to acknowledge that the content provided on my blog is solely based on my own opinions and does not carry a guarantee of certainty. Consequently, I cannot assume responsibility for any trading or investing activities carried out based on the information shared. Nonetheless, I wholeheartedly welcome any questions or inquiries you may have. You can contact me via email at thuong.huynhngoc@gmail.com.

 

Thank you for your understanding, and I eagerly anticipate engaging with you on topics concerning investments and finance.

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