A "Reality Check" is many things to me as a financial analyst and asset manager. Regardless of which hat I am wearing, there are a couple of rather simple questions to be answered before making a Buy, Sell, Hold or Hold-Cash decision.
One such question is: What do I believe, that can be supported with the raw data and information, I am provided with from the Internet research sources regarding the company or ETF is actually true - fact not fiction?
Another question I ponder is the opposite: What do I believe, from the Internet research sources is not true and pure fiction?
Believe me, having the correct answer for these questions is very often difficult. Incorrect answers for these questions always provide the answer (in hind-sight) to WHY (? ? ?) losses and disappointment are so prevalent in today's stock market.
There is so much (Un-True and Pure Myth) information being promulgated by Wall Street, the financial media, many bloggers and many financial analysts it is necessary for me to spend much of my time asking myself hard questions like these. Oh yes, there are more questions in performing a through Reality Check.
My answers to these questions are certainly not perfect, but they go a long way towards helping me present you a positive bottom line each year.
I perform a "Reality Check" many times per day. It is foundational for me when separating the currently favorable from the un-favorable Companies / ETFs.
As in all things, some perform this task better than others do.
The stock market as measured by the primary I as well as my B indicators is currently both mature and over-bought. It is also a bifurcated grouping of Companies / ETFs - there are a few, very few of these securities that are undervalued and could perhaps be purchased with a low-risk threshold at this time. Many / Most are overvalued and should not be considered for purchase.
In my work / analytics, I maintain two Asset Management Lists, one for Bullish Candidates for Buying and one for Bearish Candidates for Short-Selling. On those lists, there is my "best of the best" and the "worst of the worst" to focus on. Therefore, my job becomes almost simple at Bullish or Bearish Inflection Points!
Should you want more detail, please frame your questions and thoughts and send me an Email. firstname.lastname@example.org.
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