The idea of driving your bike with a blindfold isn’t something you might fancy, right? Nobody wants to risk hurting himself or those around. Such activities always require complete focus and concentration on the things that surround you, and most importantly, those ahead of you.
Yet, when it comes to investments, many are voluntarily willing to put the blindfold on and ignore what lies ahead. Asset managers have gotten used to trusting the past rather than acting on the future. While the reliance on obsolete data and backward-looking indicators might not crash you directly into a tree, it will surely complicate the process of getting where you want to be.
So, let’s put the blindfold aside and discover what leading indicators and timely insights can do for your organization.
Overcoming Informational Asymmetry and Deficiency with Leading Indicators & Timely Insights
In around 1500, the Dutch philosopher Desiderius Erasmus said that prevention is better than cure. But to ensure prevention, one has to identify the threats. In today’s dynamic world, more often than not, risks are laid in the future rather than in the past.
Yet, when it comes to investment firms and portfolio managers, we still witness the fixation on using outdated backward-looking data. Whether it is GDP results, credit ratings, or earnings reports, the indicators have one thing in common – they become obsolete the minute they are released.
Companies need to adopt platforms that ensure the collection of forward-looking data and unlock the benefits of actionable intelligence insights. Alternatively, to look beyond yesterday’s ecosystem and emphasize what happens now because the news that moves the market are the most recent ones. Ensuring such a timely grasp of the latest developments gives asset managers the freedom for immediate action in capturing opportunities and hedging the risks looming on the horizon.