Chapter: 11 Principles of Portfolio Management

Section: 6 Some Guidelines for Monitoring Factors that Affect Portfolio Performance

  • Follow up on corporate news in general


  • Corporate earnings are the driving force behind stock prices movements; closely monitor them


  • Corporate forecasts for the future influence the price 


  • Monitor dividend declarations, rights issues and debt issues


  • Interest movements are critical for bonds and fixed income securities


  • Senior management appointments can have an influence on the market


  • Legislations relating to certain industries may influence the share price movements


  • Keep an eye on mergers and acquisitions even if it’s a rumor


  • Political and economic trends can also affect the market as a whole or a particular sector 


  • Read analyst reports