Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 73 , 05 March 2024


Open Access | Article

Dual-Factor Investment Strategy: Market Trends and Performance Growth

Ningwei Ma * 1
1 School of Accounting Hangzhou Dianzi University, Hangzhou Dianzi University, Hangzhou,China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 73, 136-143
Published 05 March 2024. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Ningwei Ma. Dual-Factor Investment Strategy: Market Trends and Performance Growth. AEMPS (2024) Vol. 73: 136-143. DOI: 10.54254/2754-1169/73/20231597.

Abstract

The driving forces behind stock price increases are twofold: investor expectations for the future and market sentiment. Investors prefer stocks with growing performance as they are essentially investing in the future. Market sentiment, characterized by heightened enthusiasm for buying and selling stocks, contributes to remarkable gains in stock prices, with some sectors experiencing multiple consecutive limit-up movements. Against this backdrop, this study formulates an investment strategy that combines market trends and performance growth as dual factors. The research outlines the logic, specific implementation, timing of transactions, and risk management measures associated with this strategy. Using the optical communication sector as an example, the study tests the investment strategy and concludes that stocks with strong performance or anticipated growth, situated in trending sectors with sustained market conditions, are worth purchasing. Additionally, timing transactions strategically can yield favorable returns.

Keywords

Investment strategy, Market trends, Performance growth, Multi-factor investment model

References

1. Peter Joos & Mark Lang. The Effect of Accounting Diversity: Evidence from the European Union[J].Journal of Accounting Re- search, 1994, 32: 141-168

2. Kane A A, J Marcus & Jaesun Noh. The P/E Multiple and Market Volatility[J].Financial Analysis Journal, 1996, 52:54-71

3. Beaver W H. The information Content of Annual Earnings Announcements, Empirical Research in Accounting: Selected Studies[J]. Journal of Accounting research, 1968, 6: 67-92

4. Li, Z. (2021). The impact of corporate performance forecasts on stock prices and a comparative study across sectors [Dissertation, Hebei University of Technology].

5. Wang, X. (2022). An empirical study on the short-term impact of performance forecasts on stock price volatility of listed companies—A case study of constituents of the Shanghai and Shenzhen 300 index. National Circulation Economy, 25, 144-147.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-319-7
ISBN (Online)
978-1-83558-320-3
Published Date
05 March 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/73/20231597
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated