This is good...(not related to LSI) (from briefing.com):
Briefing Investment Philosophy
Daily commentary updated for February 19, 1998
Briefing is bullish on the stock market, but we also take a conservative approach in
most of our analysis.
Taking Care Even While Bullish
From the first day Briefing appeared on the Internet in 1995, we have had a Slightly Bullish
long-term sentiment rating. We never changed that, and we are still bullish on the
long-term prospects for the market.
Briefing also believes that technology is, and will be, a driving force in the economy, and
that investors should be "overweighted" in tech stocks long-term. We are, after all,
an Internet company ourselves.
Briefing is not, however, always gung-ho. In fact, we are decidedly cautious. We
believe that one of our roles for readers is to point out the potential pitfalls for the overall
market and individual stocks. Briefing is willing to jump on selected stocks that are at the
beginning of their growth curve, but we also always keep on eye on valuation. This
means not only good old price/earnings ratios, but also market valuation (capitalization.)
Make Money, not Points
There are plenty of market gurus willing to tout just about everything that exists, all the
time. While bullish, we also hope to provide value by also recognizing downside risk, and
by providing bearish viewpoints when appropriate.
For example, Briefing believes that the market has become far too nonchalant
about the effect that the Asian economic crisis will have on some U.S. companies.
The Asian financial markets may stop, or even bounce back some, but that doesn't mean
the severe credit dislocations in that region are going away. In fact, it is very much a crisis
and will take many years to sort out. Think Japan 1990's credit problems here, not
Mexico's rebound.
Such caution about Asia may seem curious, considering that Briefing's sentiment
readings for both the short-term and intermediate term have also been at slightly bullish for
a while (the intermediate term more so.) This brings up another of our trading
philosophies: don't fight the trend. Many traders lose too much money trying to prove
they are right in a position while the market is moving against them. Forget it. The market is
always right. The point of trading is not to prove a point, but to make money.
These points are also consistent with another of our philosophies: trying to pick tops or
bottoms is unproductive. This doesn't mean that buying beaten up stocks can't be
profitable, but too often such buying is premature. It is generally better to wait for a solid
technical base to form and to leave a little money on the table, for example, than to try to
get in at the very bottom. Again, making money is better than making a point.
Our General Approach
Overall, Briefing takes a generally cautious, but optimistic approach to the stock
market. You won't find us trying to make headlines by calling for the Dow to hit 10,000
next week. Instead, we hope to provide commentary and analysis that will assist readers in
making wise, independent, investment and trading decisions.
Please note that on the InPlay page, which is directed to short-term and day trading
opportunities, these philosophies pretty much get thrown out the window. There, the
key factors are the news events moving stocks and simple momentum. |
