Individual investors are always looking for hints as to where stocks are heading next. Some use fundamental analysis to look for strong earnings growth, reasonable valuations, and manageable debt loads. Others use technical analysis to spot trend reversals or gauge the strength of momentum in a particular security.
However, it’s difficult for individual investors to perform fundamental and technical due diligence on an entire portfolio of stocks, let alone entire sectors or markets. Institutional investors, on the other hand, have vast resources for market research and the expertise to separate the signals from the noise.
