In this week’s video insight Stuart provides commentary on one of the issues we will be monitoring this reporting season. After a fairly brutal confession season, analyst forecasts for earnings per share growth from the industrial stocks (excluding financials) in FY2019 has been reduced markedly. Find out why potential risk lies is in the guidance statements.

As you likely know, short selling is a trading strategy that involves borrowing and then selling shares in a business, with the aim of buying them back and returning them when the share price falls. What you may not realise is that it’s possible to take advantage when other investors short sell a stock.

Being successful as an investors requires finding and capitalising on inefficiencies in the market. Perhaps the biggest source of market inefficiency remains the human being – optimism or pessimism – leaving mispriced securities in our wake. Are you paying attention to all relevant information? Or are you over-extrapolating from recent results, leading to unrealistic expectations?