Nasdaq asked Ed Ditmire, Vice President of Investor Relations, for his take on the bull market from the perspective of an in-house IR practitioner:
It’s hard to ignore the significance of the longest-ever bull market. As an investor relations officer, I get a unique view into investor sentiment at both the institutional and individual level – seeing shifts in investor confidence first-hand. Amidst the economic recovery, the rise in valuations, the massive moves of capital into passive indexes, and the overall strength in investor confidence, two questions quickly come to mind: How do you maintain focus on your company’s investment thesis? How do you compete for capital?
I’d imagine my fellow IR practitioners can confirm that it can be challenging to message your IR program and keep the market’s performance from clouding your vision. My take? See past the macroeconomic forces when engaging the investment community. Sharpen the focus in your investor targeting to your core investment thesis and, in light of recent tax reforms, how you are redeploying capital. When you can, utilize perception studies to capture insights from the sell-side and to understand the trends impacting your company’s sector. And lastly – don’t ignore the indexes. Understand the latest trends in index ownership and, importantly, understand the index funds and ETFs you are and are not receiving capital from.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.