For the speculative investors, there tends to go about finding their opportunities in 2 ways:
- the top down approach
- the bottom up approach
#1 tends to be the
macro investors, who looked at interest rates, what the government does, which sector provides the best opportunities before making their investment decision.
#2 tends to be investors who just want to spot companies that may go against the industry trends, or that they are overall well run companies that are
not too expensive to purchase.
I think most investors belong to the #1, even though they would like to believe that they are #2 as well.
The narrative is clear to me.
Most are just confused what they should do.
When you look at certain segments, you tend to see people avoiding the segment due to unfavorable scenario. While at times avoiding completely is correct, sometimes it is not.
The example ......
