For starters, let’s take a look at what’s been happening in the markets during the first week of December 2007. We thought investors looking at fundamentals were busiest on December 4, but by the time the 7th rolled around, there was less trading and we noticed signals that people were hedging and looking to mitigate risk. What does this mean for investor relations professionals? Something we haven’t observed since early fall: many investors are doing what traders are doing, and trying to make sure their equity positions are safe. Nobody managing a fund wants to lose everything on a Friday.
So IROs, part of your explanation to management for continued volatility is, to use an analogy, like a junior high classroom before the last bell of the day: everybody’s there because they have no choice. But the moment that bell sounds, it’s pandemonium to the exit. Take today’s gentle whisper down from the Fed on overnight rates. The market responded by hacking 300 points off the Dow. Summary: Market structure at large is strung as tight as a…yup, junior high classroom just before last bell.
Markets are unforgiving, tough places: you can’t assume your investors are looking to study and buy into your strategies for the distant future. That won’t get you too far in today’s markets… except, maybe, out of a public listing because you don’t fit in.
Markets are unforgiving, tough places: you can’t assume your investors are looking to study and buy into your strategies for the distant future. That won’t get you too far in today’s markets… except, maybe, out of a public listing because you don’t fit in.
If, however, you’re willing to adapt and take some measure of interest in the juvenile hyperactivity (no offense anyone, I'm tying up the analogy) that seems to punctuate both contemporary societal and capital behavior, we think you’ll enjoy your job a whole lot more and feel better about happenings in the short-term to boot – which is great for sleeping well at night (and if you do, so will your CEO or CFO).
Article Source: http://www.articlenorth.com
Tim Quast is a fifteen-year Investor Relations veteran and founder of ModernIR. For more information, please visit: What is market structure? Investor Relations News on electronic trading and IR. Previous versions of ModernIR's Investor Relations Newsletter.
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