Chris Linkas of London UK & NY says that there are some broad tips to investing in global stock markets. He says that perhaps the biggest thing to know is that financial experts really actually don’t know everything. Stock markets have too many moving parts and too much entwined human emotion for everything to always make sense.
One example he uses is when professional investors should exit the stock of a company and instead decided to double down on their bad bet. This gets them into even more trouble and lost money. They invested using their emotions instead of their heads by not accepting the fact they made a bad decision and need to limit the damage.
Chris Linkas has been the European Head of Credit for his company for the past six years (http://www.spoke.com/people/christopher-linkas-fortress-3e1429c09e597c1006eb4661). Prior to this he worked in their American offices as the lead of their commercial real estate investments. His specialties were taking advantage of opportunistic debts and making sound real estate investments on good properties.
One thing all investors should keep in mind, Chris Linkas says, is that you shouldn’t take action whenever you hear some company is about to be bought out. These rumors turn out to be false far more often then they are proven to be true. One recent example of this was that many investors believed that Hasbro Inc. was on the verge of buying their main rival, Mattel Inc. People who bought Mattel’s stock on this bad information are still waiting because even a year later it the rumor still hasn’t panned out as accurate.
Another common mistake Chris Linkas comes across, committed even by fund managers, is never buying the stock of a company ever again in which they lost money. They get frustrated with this loss and decide they’ll never be burned by that company again. Just because a company made for a bad investment at one time doesn’t translate into their always being a bad investment. Instead you need to evaluate the company on its present and future merit because they could have turned things around and have become a great target to invest in.