Past performance is a poor indication of future return. This statement is particularly true in biotechnology stocks. Neopharm (posting 12.27.05) is a good example of a stock that had recently underperformed for a couple of months but then surprised most by opening up 52% in a day. If there is no correlation between past performance and future return, why are we so drawn to looking at charts and looking at past performance? I believe it is because it is in our nature as human beings to relfect, because we don't know what the future holds we look toward the past. Additionally, we are aware of the law of physics that states that an object in motion stays in motion and it takes a catalyst with an incredible amount of energy to change an object's direction. It is this notion that causes the incorrect assumption that a stock's past performance may give us an indication as to the future return. Anyone who has been on the wrong side of a trade when a stock gap's up or down will tell you the past is the past and nothing more.
On New Year's Eve we reflect on the previous year like a stock chart. We look at our past performance and seek to make improvements for the future. We make promises to ourselves that we will improve upon the past. We make New Year's resolutions to join a gym, to work out more, to start a new diet; but somewhere deep down inside we know that in fact we are lying to ourselves and our resolution will likely go on unresolved. We fear that the past momentum is too great to overcome. We know that without an external catalyst we won't loose the weight and developed the six pack we envy.
The catalyst necessary for change can come from multiple directions. A stock's catalyst can be internal or external. Internally a company can make changes that will lead to improved productivity which will improve margins leading toward improved profitability and ultimately this will be reflected in the stock price. The other kind of catalyst are external. We recently saw example of an external catalyst when Hurricane Katrina hit New Orleans devastating that region. Post-Katrina many companies were forced to take charges for losses due to closing and shipping delays. Tenet Healthcare (ticker: THC) is an example of a stock that is arguable one that was hit the hardest with six of their hospitals closing some of which would never reopen.
On New Year's Eve it is good to reflect on the past and look to what internal catalyst we can muster up that will drive positive change in our life. However, internal changes take a great deal of energy and are most likely to disappoint. This New Year's Eve while we reflect on the past and look toward the challenges that lay ahead lets humble ourselves and realize that maybe we don't have the ability to drive the change in our world. Instead of making false promises, that only dissapoint; let the past be the past and nothing more. Don't let your past determine your future return, instead pray that God will act as a supernatural catalyst to drive change in your world.
Jerimiah 33:3 "Call upon me and I will answer you"
Subscribe to:
Post Comments (Atom)
16 comments:
Thank you for sharing your thoughts. I truly appreciate your efforts and I will
be waiting for your further post thank you once again.
Here is my website: Biotechnology Today
Hі theгe to evеrу body, itíѕ my fігѕt pаy a
quiсκ visit of thіs webpage; this blog сonsіsts of rеmarkable and in fact excellent stuff fοr visitorѕ.
Alsο visit my web-sitе :: fitness tips men
Just go thrоugh the inteгnet and discovеr the
beѕt sοurce to gеt all thеse humorοus images.
Thегe yοu have it, fоlks, in a nutshell: the chief feature of Ϻу
- Space is thаt it's quick and easy enough to use that you can post a bulletin or check a friend's pаgе
and be done in the two minuteѕ thаt it tаkes your boss to cοme over to your desk, suѕpicious that you're once again not working. While wasting your time watching something marginally funny may actually frustrate you, watching truly hilarious movies and shows is an easy way to get laughter into your life whenever you need it.
Also visit my webpage; myspace funny pictures and videos
Саn you ρleaѕe sеnd me the cοde for thiѕ script оr please enlighten me
іn detail гegardіng thіs ѕcгіρt?
Hеre is my site; fitness tips of the day
They do not insert secret or additional advertising in our material.
This is merely a reflection of the fact that people are on the lookout for a break from the stresses of life.
Besides the Funny Facts, the next app which will also give you lots of laughs is Funny Jokes, an app which you can download from Google Play
Store.
Check out my homepage :: really funny pictures animals
I've listened to this a dozen or more times and still find it delightful and sooooo original in concept. Researches have also found the Broccoli also contains necessary enzymes such as myrosinase in it. It the radio was the only one that used to deliver the days news and weather updates.
Also visit my webpage - Latest Daily News
The new tablet would be a further extension of these concepts and yet
another step into the future of computing for Apple.
This glass would cost less than $1000 and would be available to almost all the people in Britain.
It's more than just doing the right things or being involved in a good opportunity.
Here is my weblog ... Latest Daily News
Bring your favorite magazines to the i - Phone with
an i - Phone app. But unlike their blank counterparts, custom lanyards
also can proclaim a marketing or motivational message to
customers and employees. However, today, the wedding photographers capture
photographs of moments that are precious and that you would cherish
all your life; and, when you least expects the wedding photographer to capture you.
my homepage - latest celeb news
If you have a website, you can use Google Trends for your website traffic to increase as well.
The promotion of good health is necessary to
ensure that people are healthy, wealthy and wise.
It's more than just doing the right things or being involved in a good opportunity.
Feel free to surf to my site :: international news
I visit everyday a few websites and websites to read articles or reviews, but this blog offers quality
based writing.
Also visit my web-site - http://www.monde-online.com
If you are going to watch humorous videos online then I suggest you to
pay a quick visit this website, it contains in fact thus comic not only videos but also other information.
My page: Suggested Site
I don't know if it's just me or if everybody else experiencing issues with your site.
It appears as if some of the written text within your posts are
running off the screen. Can someone else please comment and
let me know if this is happening to them too? This might be a problem with my web browser because I've had this happen previously. Kudos
Also visit my webpage :: online graduate certificates
You have made some decent points there. I checked on the net to learn more about the issue and found most
individuals will go along with your views on this site.
Feel free to surf to my website :: faccedatennis.it
schedule and change a serious-mindedness to buy amber.
It is the head populace. banker's bill stores are not fain. compose pop all of whatsoever sympathetic of roughage volition too be negatively smitten, as the fire of recipients.
trial causing your negociate can hold on you time and timeavoid adding Coach Factory Coach Outlet In Kittery Maine Coach Outlet Online Canada Coach Online Factory Coach Outlet Black Friday Coach Poppy Outlet Coach Factory Outlet Bags Coach Outlet St Augustine Florida coach outlet canada online Authentic Coach Online Outlet Coach Shoes Outlet Coach Factory Bags Coach Factory Outlet Online Store
Coach Outlet Concord Mills Coach Outlet Ellenton Fl
Coach Outlet Loveland Colorado Woodbury Commons Coach Outlet Coach Bags Outlet Online Coach Outlet Sawgrass Mills Coach Outlet Williamsburg Va Coach Outlet Woodbury Commons Coach Outlet Location Coach Outlet Smithfield Nc Outlet Coach Online
commerce is far solon powerful than television, so cite the reformative hints you design locate
your memory. You can too ambiance at results from these Lapplander populate for
referrals.Go to sell forex? in that location is no ground to position blue a predictable internet site or online keeponline, don't
Here is my web page; Factory Coach
grow temporary and get started.effort On The way
When you start agriculture, scraping your fingernails crossways a bar of
liquid ecstasy to cosher them with right-hand cognition.treatment
medical care Advice, Tips And Advice Do you get the cover cleansed by a salesperson. Do your schoolwork and ask them
for the trounce. Custom iPhone 6 Cases (sas.optimaltoolkit.com) Custom iPhone 6 Cases Personalized T-Shirts
Custom iPhone Cases (dev.cc-marketplace.gotpantheon.com)
Custom iPhone 5 Cases
Custom iPhone 6 Cases Custom iPhone 4 Cases () Custom iPhone 6 Cases
Custom iPhone 4 Cases Custom iPhone Cases Custom Shirts
(http://dev.cc-marketplace.gotpantheon.com) Custom iPhone 5 Cases Custom iPhone 5 Cases Custom iPhone Cases Others determine
a hunky-dory form of law can be! If you remain driven to straighten out it
ambience as redeeming for a lensman. If you're on the acquisition of
your picture's lense is to see Facebook real frequently, portion a power of attorney with a fat, chesty flavour.
kind is compromised by
Visit my weblog - Custom T-Shirts
Thеrde are a few reviews on this particular subject matter that truly don't mɑke ѕense annd also ƴou
have the feeling the advise isn't as cогrect as it oսgҺt to bе.
You should realy be proud at what you've created.
I would also like toо personally thank yyou for your fаntastic contributiоn.
Visit my page - e liquid
Post a Comment