FNArena’s Weekly Insights – September 03 2019
On the micro-level, a failed or splendid financial performance release can have a noticeable impact on a company’s share price up to three months down the track.
On the macro-level, recent observations suggest beats and misses can set new trends for sectors and broad themes, or keep the momentum going for longer.
With the August reporting season revealing more weakness, and most performance disappointments, from laggards and cheaply priced companies, the obvious conclusion might be it remains way too early to predict the downfall of highly priced, rapidly growing performers.
Patient investors in lagging building materials companies, retail landlords, listed professional value investors and small cap financials might have to be patient for longer.