Alistair Schultz
Independent Analyst
In the midst of earnings season, it seems appropriate to talk about the importance of letters provided by CEOs and how they can shape not only price but also the continued growth of a business in an Investor's minds. When trading a public company, almost everything must be disclosed often after the compliance team, and auditor and perhaps a proofread or even two are conducted.
While those provided much-needed insight into a company's performance and general health, it is the optionally included letter from the CEO that can often sway prospective and current investors' hearts and minds. The letters are generally penned with thought-provoking curiosities and can lead an investor into ultimately making a decision on whether to buy, hold, or sell.
These letters' purpose is usually for transparency, providing an honest focus of the CEO on the core principles of the company moving forward over the next financial year or quarter. They can sometimes divulge more than necessary or from an extensive base. But regardless of the letters key components, its about getting into the head of the person at the helm.
CEO letters are not just read in a company memo, nor are they only digested by investors, in recent times watchful spectators have joined the library. As time has gone on the CEO Letter has become more and more critical when weighing in on an investment decision.
In my eye's warren buffet provides the gold standard of the CEO Letter. He is clear and concise with enough commentary to feel as if you were present in the moment of writing, and as such, they are not just a simple corporate communication tool.
So next time you see the memo for a CEO letter, take the few minutes to read how the big wig at the other end of the pen (or keyboard) feels about business in their world.
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Editors’ Picks
EUR/USD holds firm above 1.1900 as US NFP looms
EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.
GBP/USD remains above nine-day EMA near 1.3650
GBP/USD recovers its recent losses from the previous session, trading around 1.3680 during the European hours on Wednesday. The technical analysis of the daily chart indicates a sustained bullish bias, as the pair trades within an ascending channel pattern.
USD/JPY remains heavy around 153.00 on firmer Japanese Yen
USD/JPY is sustaining its three-day rout at around 153.00 in the European session on Wednesday, awaiting the closely-watched US NFP report. Rising bets on Fed rate cuts keep the US Dollar depressed. In contrast, expectations that PM Takaichi's policies will boost the economy and allow the BoJ to stick to its hawkish stance bolster the Japanese Yen, weighing on the pair amid intervention fears.
Editors’ Picks
How will markets react to January Nonfarm Payrolls data? – LIVE
Nonfarm Payrolls in the US are forecast to rise 70K in January. Annual benchmark revisions and methodology updates could offer additional insights into the labor market conditions and drive the US Dollar's performance by influencing the Fed policy outlook.
EUR/USD holds firm above 1.1900 as US NFP looms
EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.
Gold sticks to gains near $5,050 as focus shifts to US NFP
Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.
GBP/USD remains above nine-day EMA near 1.3650
GBP/USD recovers its recent losses from the previous session, trading around 1.3680 during the European hours on Wednesday. The technical analysis of the daily chart indicates a sustained bullish bias, as the pair trades within an ascending channel pattern.
S&P 500 at 7,000 is a valuation test, not a liquidity problem
The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.
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