10 Commandments Of Long Term Investing (6 of 10)by Morgan Stanley STEP
Commandment VI: Pay Attention To The Three E's: Economy, Earnings, and Emotion - These are the three vital tools of the equity investor. Watch for economic direction, gauge the multiple perspectives, and judge a sane median. Pay attention to the broader earnings landscape as it provides a guide to where growth is headed. Emotion, always difficult to discern, means judging the appetite for risk present in the market place.