Tips to kickstart your investment journey for the new year and new earning season
Get ready for the new US & ASX earning season in 2023
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Sponsored by moomooo. Looking to invest in Aussie, US or HK stocks & ETFs? Sign up NOW to get up to $110 cash rewards via Finder! ($20 for first time deposit, additional $90 when you deposit $1000). Plus 180 days brokerage fee free trading AU & US stocks. And lifetime access to free lv2 US market data. T&Cs apply.
It's fair to say that US stocks had a bit of a rough year in 2022, with the S&P 500 having fallen by 20%. Despite this, the index has risen over 8% since the start of the 2023 and US stocks remain a hugely popular option for investors this year.
The US stockmarkets are arguably the largest and most liquid in the world, offering access to a diverse range of industries.
With the new earning season about to kick off in the US, savvy investors are looking back on how the companies' earnings have affected their portfolio.
Every earnings season is a great chance for investors to stay ahead by reflecting on current and future investment goals, how your assets have performed, and what the market may hold for the year and beyond.
We've put together a primer on some of the ways you can use this earn
👋 Hey there!Since we've partnered with moomoo for this article, we'll be using its products as tools for demonstration throughout. moomoo is a one-stop trading app that helps users better discover opportunities and assists them in executing their strategies in the stock market. You can trade U.S, Australian and Hong Kong stocks all in one app.
It's important to note that all investments have risks – you should always consult with a financial professional prior to making any major financial decisions.
Make earning reports easier
Public companies issue official financial reports on a semi-annual basis that shows expenses, earnings, and overall profit of the company over a certain period of time. These reports enable you to get a better understanding the commercial well-being of a given company, and provide insights on purchasing and investment decisions.
The period of time in which most quarterly corporate earnings are released to the public is well-known as an "Earning Season". Earnings seasons are easily the busiest time of the year for those who watch the markets. Analysts and managers typically set their guidelines and estimates to correspond to specific quarters or FY endings, so the results reported by firms during earnings season often have a big role in the performance of their stocks. This informs investors whether or not to purchase, sell, or hold the stock.
However, earning reports are not always accessible. Ordinarily, an investor would need to source them on an individual basis, download them from multiple sources, work through their complexities, and grapple with things like ratios and fundamental analysis. It's also arduous to stay track of the latest earnings release dates for specific companies.
The good news is that there are resources that streamline this process. Some trading platforms will auto-distill this information for you, allowing you to get the relevant information for your needs.
To point to one example, moomoo offers a smart earnings calendar that can be customised to your specific investing tastes. Launched in Australia late last year, moomoo is a trading app that helps users better discover opportunities and assists them in executing their strategies in the stock market.
Moomoo's smart earnings calendar allows you to add reminders for specific companies, so that you can be automatically notified when a company reports its earnings.
The platform also allows you to register for online earnings reports, listen to live conference calls, and make sure you stay head with earnings insights with Visualised Financials Data.
Balance and diversify your portfolio globally
One of the most straightforward ways you can start rebalancing your portfolio is to look at how you might be able to diversify it in 2023.
If you're an experienced investor, you've probably been able to identify areas where you're consistently performing well. What new areas could you apply that skillset to?
Conversely, if you're new to the field, what sort of companies interest you? Where would you like to take your first steps? Would you invest internationally?
Studying the market and seeking advice are important, but you also need to have the right tools to support your action afterwards.
For example, moomoo lets you invest across AU, US stock and Hong Kong stock markets, all in one platform. You're also able to start investing with just one share across all markets, without needing the usual minimum $500 of AU stocks.
Additionally, you'll have access to extended trading hours, and 24/5 instant currency exchange – allowing you to trade to a broader set of markets without being restricted to Australian trading hours.
By expanding the markets you have available to you, you've immediately opened up a substantial network of stocks and companies that you might not otherwise have considered.
Of course, with more options, more risk can follow. Tools like moomoo's stock ranking lists and heat map show heavily traded, big movers or hot stocks in the market, and can be extremely useful for investors looking to diversify their portfolio.
Don't just invest in stocks - Invest in yourself
Investor education never stops. Anyone who tells you otherwise is just wrong.
So at the start of every new year, it's worth reflecting on what you've learned previously as well as areas where you know you need to improve.
There is a whole range of options for self-education out there. As with anything in investing, proceed with caution.
The first port of call for many today is YouTube or Reddit, thanks to the wide range of pundits and "experts" that have made their homes there.
Although it's a foolish investor who writes these outlets off completely, keep in mind that the quality of advice can vary radically.
Many investor platforms also provide educational resources. For example, moomoo's Australian arm launched its Premium Learn program in December 2022, which offers an approachable, structured and practical way of learning how to invest for investors within the app.
Moomoo offers more than 3000 carefully curated courses, step-by-step tutorials and video webinars. You're able to can customise study plans or follow hand-picked content that covers topics including stock investing, options, diversified strategy, etc.
Equip yourself with pro tools
Given how central your investing platform is to your investing process, it's always a good idea to take stock at the start of a new year and see if your investing platform is serving your needs.
You may have realised that your platform is lacking in features or simply feel that the fees you're paying are too high relative to the trades you're making.
Even without these considerations, it's worth doing a "temperature check" at least once a year. It will give you an insight into what other offerings are out there and allow you to make an informed decision.
Now, each individual platform out there has its own pros and cons. But at minimum, your platform should include the following:
- Access to a range of different products
- Real-time trades
- Good balance between services and fees
- Support and educational resources
- A news feed
The extras are important too. To point to an example of some of the options out there, let's take a look at moomoo.
moomoo's platform offers free, real-time L2 US market data such as the ask price and scope of bid on a particular security. These can provide you with keener insights into who's buying, when and why – all of which can inform your own purchase decisions
Of course, everyone's individual needs are different. Consider a few different options and select the one that's right for your needs.