Is Investor Relations Becoming Transient Like Trading?
Let us first take a look at the markets for the first week of December 2007. Our analysis showed that the core investors were most active December 4, while trade significantly alleviated by the 7th and bore the telltale signs of massive risk management and hedging. For Investor Relations, this means real investors finally followed traders in the mouth – we have not seen much of that in the past few months – everyone asks for an insurance on their own views. No fund manager wants to be caught in the open air on a Friday today.
Of course not. There are a few points worth considering.
Part of the explanation to management for further volatility is to use an analogy, as a junior high school for the last bell of the day: everybody is there because they have no choice. But when the bell sounds, it is a rush for the exit. Take the soft whisper down the Fed charges on overnight. The market reacted by hacking 300 points from the Dow. Summary: Market structure is as tight as big a junior high school just before the final bell.
Speaking of the market structure and analogies, let us return to the transience and investor relations. Investor relations will never and should never be a short-term efforts. Choose your aphorism “think globally and act locally” (mathematicians and you mock me with Diophantine equations, please. It is a metaphor.), The “short-term thinking, long-term action,” and the point is that IR must evolve to the views of the immediate events include the big picture to understand why stocks behave as they do now.
If you stubbornly persist in carrying out your IR program altruistic, assuming that investors simply your long-term business of reasoning … well as we suggested earlier, go private. Because public equity markets are no place for you.
If however, you are willing to adapt and a degree of interest in the young take hyperactivity (no offense anyone, I am the use of the analogy) that seems both contemporary social capital and highlight behavior, we think you’ll enjoy your work a lot more and feel better about events in the short term to start – this is great for good sleep at night (and if you do, so will your CEO or CFO).
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