The Build Up Phase

I don't like to think about capitalizing off disasters, but you know there are people out there who will take advantage of any situation. I say it's better to acknowledge the truth instead of either ignoring or condemning it.

With that said, here’s a thought for the day. Money managers and analysts have a certain preferred method of building a portfolio. Generally speaking, most apply the top – down or bottom – up approach. Top – down basically means that you analyze the macroeconomic conditions and work yourself down to the company specifics. Bottom – up approach is the opposite, where you would screen for good companies and add them when conditions look favorable.

Well, here’s a bit of a top – down thought for the day. Hurricane Katrina devastated the southern part of the U.S. And many victims currently suffer a nightmare-like pain that will not be easy to relieve. From an investment perspective, think about what companies will benefit from the rebuilding phase. People will pick up the pieces and move on with their lives.