Reactive Investing: How this strategy can help you unlock profits beyond targets
The stock market has witnessed a remarkable rally since the COVID-19 pandemic, with many stocks and indices surpassing analyst-set target prices. This trend underscores the limitations of rigid target-based strategies in equity investing. As markets are dynamic and influenced by a plethora of macroeconomic and microeconomic factors, investors must adopt a flexible and adaptive approach. A reactive strategy, rather than a fixed target-based one, can help investors navigate the market’s complexities and optimize returns. Notably, in 2024, the S&P 500 outperformed Wall Street strategists’ average price targets by over 25%.
Setting targets is undoubtedly a good practice, but rigid adherence can sometimes lead to missed opportunities. Exiting…
