
Investors like data and particularly the predictability of data. In fundamental investment analysis, company and economic data are the signal that is useful for modeling future expected economic growth rates, revenue, earnings, cash flows, etc. We use these to determine future values that can be discounted back to a fair value today. This helps us decide if something is currently cheap or expensive relative to future expectations, and importantly, what are we buying, holding or selling for our clients’ portfolios. Unplanned economic and political events can affect our economic decision making but they are mostly noise around a signal.