Key insights
- The post discusses investment strategies, specifically whether to switch investments during a downturn based on positive news about another company, versus holding and waiting for recovery. It also asks for an explanation of forward and trailing earnings and their implications for investment decisions. The advice sought is general and lacks specific company or market information, thus having a slightly negative influence due to the potential for impulsive decisions based on incomplete information.
My post is in two parts. If you can, please kindly answer both.
1- I was wondering if switching whilst you are in a dip is a good idea. Let’s say you have a loss of x% with company A but then read and follow the news of company B which is VERY positive. Is it advisable to switch and hope to make back x% and then some or it’s purely a waiting game?
2- Also, can someone kindly explain forward earnings and trailing earnings and how these correlate to buy or sell or hold. Kindly explain like I am fresh out of my first day in kindergarten lol.
NB: Assume there is no rush with the money but I need a good balance between patient portfolio growth and day trading when I have some time.