Technical AnalysisTechnical AnalysisJohnston Investment Counsel believes that stock will ultimately follow their fundamental characteristics. However, it may take several quarters or perhaps years for mis-valuations to be corrected. So, while fundamentals may provide insights into the future direction of investment style returns, it does not necessarily assist with the timing of those changes. As a result, Johnston Investment Counsel incorporates technical analysis as a component of its style-rotation investment process. As the chart below suggests, when one style begins to outperform, it tends to do so for a period of time -- sometimes years.
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