Did u know about Clientele Effect?
Consider a company that currently pays a high dividend and has attracted clientele whose investment goal is to obtain stock with a high dividend payout. If the company decides to decrease its dividend, these investors will sell their stock and move to another company that pays a higher dividend. As a result, the company's share price will decline. So, maybe before u perform a stock-pick next time, be aware of the "Clientele effect" theory and pick your stocks with caution. That being said, I always believe that u cant beat the markets by being a 'Theoretical Financial Wizard'.....U CAN beat the market only by understanding the MARKET SENTIMENT and making THAT VERY SENTIMENT work for u...Good luck & happy investing!
0 Comments:
Post a Comment
<< Home