They say every cloud has a silver lining, so does that mean it is possible to take advantage of the recent stock market fall? Yes – if you are prepared. Today’s IROs should be aware of market movements and trends, and know how to optimise strategic initiatives as they relate to a company’s market capitalisation.
Armed with a simple but informed approach to market trends, IR becomes a key function in helping senior executives with the substance and timing of their strategic decisions.
Many IR professionals may be caught in the grip of a recession across most developed western market economies, limiting the value-enhancing actions that can support the share price.
Some, however, will have spotted an opportunity: they recognise where we are in the current market cycle and are focusing their company on the right strategic initiatives and investments for the future. They also know how and when to communicate to the market about these initiatives to optimise the market impact.
Most market-aware people know of the economic clock concept. Right now we are probably somewhere between six and eight o’clock – between ‘recovery begins’ and ‘hesitant, uneven recovery’. The economic clock is a useful contextual reminder to focus your company’s communication at all times during the economic cycle.