Is looking beyond earnings important in stock markets? Veye's View

The analysts at Veye believe it is. Because Earnings don't repay loans, cash flow does. The stock markets run on certain principles which have not changed ever since. What has changed is human behaviour.
One such principle is that when buyers are not buying aggressively and short sellers are reluctant, the markets could be close to its fair value.
The other is to have a long term view. You can have a bad day but a winning week, a bad week but a winning month, a bad month but a winning year.
Stock markets are often cyclical. The sector once hyped not so long ago could find itself out of favour now. Investors just need to manage the risk, the markets will manage the reward.
A brighter side right now is that Australian retail spending rose 0.9% month on month in May, the fifth consecutive monthly increase and a fresh all-time high, beating economist expectations. According to Quarterly Economy Wide Statistics, growth across five of the six retail industries in May is evidence of spending remaining resilient.
The data also reflects those Australian consumers continued their spending despite surging inflation. Although good for Consumer stocks, freight and logistics costs could be a thorn in the flesh.
"Biggest gains are made in the early stages of the new uptrend. Never give up in bear markets because the smartest opportunities appear in the young bull markets. That is why in such a scenario, when the markets are so turbulent, sage advice is much sought after whether you are looking for value or growth" said Varun Ratra, Director, Veye Pty Ltd.

Veye Pty Ltd
Level 21, 207 Kent Street, Sydney, NSW, 2000

deepanshunasa@veye.co.in

Veye is a leading independent equity research firm dedicated to helping its clients improve their investment results through unbiased and precise recommendations, market intelligence, and sectoral reports.
Veye, is known for its astute advice and picking stocks which give value combined with growth. While the Fundamental analysts at Veye are always aware of the macro-economic picture. The technical analysts are able to gauge the undercurrent and market sentiment through price action happening in the market, being reflected in the technical charts. And charts don't lie.

This release was published on openPR.