THE STOCK MARKET
RECAP OF STRATEGIES FOR STOCK SELECTION Peter Lynch: Go with what you know(after some research) Markets: Current and Future A company should have customers today and even more tomorrow or it isn’t growing. Questions to consider? 1. Phase of Development – Early or Late? 2. Global Markets – Can the product/service be sold overseas? 3. Demographics – Will a large percentage of the populations want this product?
RECAP OF STRATEGIES FOR STOCK SELECTION Economic Cycle Is the Economy expanding or slowing? Good Times: Not so good times Defensive Industries: Even in difficult times people use these products. Cyclical stocks: High priced consumer goods Raw materials Avoid obvious risks Current industry condition Changes in technology Specific stock situation
INTRODUCTION TO THE STOCK MARKET