Yesterday I wrote an article titled, Hope Is Not Part Of My SWAN Strategy, in which I explained that “hope is not part of my vocabulary. Fundamental analysis is the best strategy for me, and it’s one that allows me to take the guesswork out of the investing process.”
In hindsight, I wish I would have framed my article by pointing out that we are all humans (maybe a few aliens read Seeking Alpha too) and that means that we all have emotions.
While I don’t encourage investors to use “the market cycle of emotions” to make investment decisions, I do consider psychology an advantage, especially for investors wanting to capitalize on the point of maximum financial opportunity.
Some may consider me an optimist, especially when it comes to shares in REITs like Tanger (SKT) and Kimco (KIM), and that is precisely why it’s important for me to hang my hat on fundamental analysis. Both REITs are experiencing the whipsaw effect and while I can relate to the fear, panic, or denial as it relates to retail in general, my DNA has trained me to pay close attention to the factors that drive profitability.
Many of you know that I spend a considerable amount of time meeting with REIT management teams. To me, this is a critical aspect for my research and a means for me to understand the messaging for the company. It’s an absolute necessity for me to listen and watch the CEO speak in a language that is understandable and points to the value proposition of the enterprise.
I don’t care about the pretty pictures in the investor presentations, as much as I do understanding the company’s playbook. Any successful management team should be able to articulate a company’s competitive advantages in a way that any investor can understand. As
