I think that the macroeconomic factors are much more important. As we have seen over the last few years, well managed companies with good balance sheets can be brought down by the overall economy.
Once the basic decision to invest is made based on macroeconomic factors, I will select the company and the type of instrument based on company specific issues.
For example, once it became clear that canadian financial companies were not about to go down the drain, I picked up depressed preferred shares, starting with the strongest (TD) and later more risky issues such as CCS.
Once the basic decision to invest is made based on macroeconomic factors, I will select the company and the type of instrument based on company specific issues.
For example, once it became clear that canadian financial companies were not about to go down the drain, I picked up depressed preferred shares, starting with the strongest (TD) and later more risky issues such as CCS.