Policy Investing explained in 2 minutes:
- Policy ≠ Politics.
- Policy is not some mystical factor. It is simply another input into a company's operations (e.g. legislation and regulation).
- For example, if the price of oil were to drop this quarter, energy stocks would likely underperform. No one is going to argue with that.
- Inputs like the price of oil and movement of interest rates are arbitraged away because most investors understand these impacts.
- But taking a step back, we already know that policy is just another input into a company's operations. And because the policy making process is public, we know what the changes will be.
- However, these changes are often A) ignored because "don't invest in politics" (see #1 on this list) or B) misunderstood.
- This creates inefficiencies in stock prices and often entire industries.
- EventShares seeks out these inefficiencies and offers investment strategies of our best ideas for your portfolio.
- Additionally, our investment process guides us to avoid negative policy impacts in an effort to protect capital (e.g. trade tariffs).
- Learn more at EventSharesFunds.com >>
Download our Cheat Sheet and White Paper: Guide to Policy Investing to learn more.