Mark Hauser's Tips on Investing in the Stock Market
Mark Hauser, the principal of his own private equity firm, recognizes that there is plenty of risk in investing in the stock market. Nevertheless, due to the impacts of inflation in particular, if you don’t invest part of your money, then you lose a decent part of your financial nest egg overall.
So what tips does Mark Hauser provide for doing your due diligence in selecting stocks?
An individual stock’s microcosm
The first thing Mark suggests, and possibly the easiest one to follow, is to keep track of the stock’s microcosm.
Potentially, a new investment or a new product could reshape the market and send the product soaring. At the same time, if the company has a volatile CEO who likes to make outrageous statement on Twitter, or who has a reputation for womanizing, that CEO may be on his way out, and the stock prices of the company as well.
An overall look at the stock market
Have stocks been overpriced for a while and are due for a correction? Is an entire sector such as the tech sector headed for a downfall, or on the other hand, perhaps they are the only game in town that is doing good.
Mark Hauser suggests that investors need to keep track of how an overall sector in the stock market is doing.
Factors affecting overall performance
Mark Hauser suggests that the wise investor also take into account the major factors that influence investment viability.
For example, at present there are three major factors that are affecting the stock market.
One is the supply chain crisis, which is affecting profitability of most companies worldwide. The second is inflation, which in part are widely affected by government policies and politics, such as the continuing fight against Covid and the war in Ukraine.
Another is the overall health of the economy, with results such as the national employment rate.
In order to invest properly, the individual investor should take all of these factors into account if they want to succeed.