GDP is a key piece of economic data for investors, but its complexity and use of historical trend data has made it increasingly unreliable as a catch-all measure of economic growth.
As an investor, merely recognizing stock market distractions as entertainment rather than information is step one to limiting their negative influence.
Long-term investors should spend more time researching a company’s corporate culture and how it can strengthen (or weaken) its economic moat.
There are several rules of thumb we can use to ballpark an appropriate asset allocation, but these can be misleading. Looking at the details of your situation is the key to getting this just right.
Investors often use one-dimensional factors when assessing an investment’s value proposition. At Johnson Investment Counsel, we prefer to take a more holistic approach that includes a business quality evaluation.