Times & Seasons: When to buy
We appreciate that markets are not rational. They are comprised of an array of participants who are often incentivised to focus on short-term performance. In addition to increasing volatility, this short- term focus incentivises a herd mentality which is reflected in distinct price-action patterns, the study of which is called ‘Technical Analysis’.
We also appreciate that markets move in cycles with discernible times and seasons linked to the global availability of credit. We seek to identify these rhythms through our own proprietary methods of technical analysis. This enables us to better time our entrance and our exit once we have identified a compelling fundamental story.
While fundamental analysis may help us determine what to buy, technical analysis often helps us decide when to buy. A successful investment is made on the ‘buy’ more than on the ‘sell’.