Using stock analysis wisely means more than
just making sense of the language and format of analyst reports.
It also means knowing how that information relates to your financial
goals.
As you educate yourself about the different stock
selection strategies available, never lose sight of the most important
factor in any stock investor's arsenal: your financial plan.
For example, if all the winning stocks one year seem to be in
a single hot industry — say, technology stocks — it's
best to examine your investment strategy before you sink all your
money into a
sector
that might not seem so hot a couple of years from now.
Sam Stovall,
Chief Investment Strategist at Standard & Poor’s