Emphasize the Essentials

Posted on 06/12/2019

This article is sponsored by MFS Investment Management.

Rob Almeida, an investment officer and global investment strategist for MFS Investment Management® (MFS®), discusses why it’s important to put macroeconomic data in context and focus more on material corporate fundamentals.

In brief

  • Investors often pay outsized attention to binary outcomes while focusing too little on the importance of material factors such as free cash flow generation and intellectual property.
  • The ongoing technological revolution has made historical economic comparisons less relevant.

    • Financial markets place a great deal of emphasis on binary outcomes: Will the Fed lower rates? Will there be a resolution to the US–China trade war? Many a short-term investment thesis has relied on predicting the answers to these sorts of questions.

    Disclaimer
    By clicking on the link to view the report, you acknowledge you are an institutional investor or other accredited investor.

    Get News, People, and Transactions, Delivered to Your Inbox