Non-Directional Investing

Non-Directional investors attempt to take advantage of market inefficiencies and stock pricing differences. Instead of exclusively depending on the market to increase the value of their best guessed preferred stocks over time, these investors rely on the fact that at any given time, there are stocks available that are over priced and those that are under priced. Two examples of this strategy include event driven investing and fixed income investing. Event driven investing is usually incited by corporate upheavals, declarations of bankruptcy or mergers. Each of these events cause dramatic fluctuations in the prices of a given corporation’s securities which the investor seeks to take advantage of as quickly as possible. Fixed income investing, on the other hand, yields a yearly fixed return, usually in the form of bonds