In this issue

Lurking danger of the herd instinct

Humans are herd animals more than we care to admit. That instinct has kept us safe for generations when the lurking dangers were natural disasters and tribal wars. Now that very instinct, for collective thinking that has kept us safe, may also hinder us as investors. Those investors will act along with the herd, but will often buy when others are done buying and remain skittishly on the sidelines when prices fall.

Even for late bloomers, 2021 was a phenomenal year to be investing in a select group of stocks. Despite the pandemic, many companies managed costs and pivoted to maintain profit margins. Several firms did remarkably well. One analysis suggested 12-month trailing earnings were up 88% by the end of 2021. The stock market gained 80% during 2021 with much of the rise due to the performance of a dozen or so listed companies.

Analysts expect earnings to grow only marginally in 2022 except for those companies in shipping.

Equity was the asset class for success in 2021, although only a few companies saw profits and share price increase. Now as Sri Lanka faces an economic crisis, due partly to its access to international debt markets being shut, investors are wondering what asset class to bet on. In this guide to investment in 2022, we discuss how investors may go about crafting a strategy for the new year.

Echelon Magazine Description:

Intelligent Storytelling

The one thing that will define the Echelon magazine will be the quality of the storytelling. Echelon,published monthly, will cover in depth Sri Lanka’s most successful businesses, examine their winning strategiesand profile their leaders in immersive stories. Great stories are also never limited to words, and our approach includes rich photography, bold graphics and leading edge design which together will make for a compelling read.

But business doesn’t start and end in a boardroom;it extends to the golf club greens, to international travel and to pursuits that blurthe lines between commercial venture and sheer passion. The Echelon team will present the best in business and lifestyle coverage that will appeal to an exclusive and affluent readership: an otherwise hard to reach demographic.

Content will be developed by one of the most experienced and proven teams of editors, financial journalists, photographers and designers in the country.This team has already raised the bar for powerful and expertly crafted business news. Shamindra Kulamannage, will lead the editorial team.

The reputation of Echelon is being built on the separation between editorial and advertising. However we are also looking for the most creative and impactful new formats that can be applied in our magazines, iPad app as well as website to help our clients reach our audience. We are flexible and creative and we will have a solution for every single advertiser who wants to reach our audience.

We are passionate about creative results and about working with our advertisers to help them create bespoke multi platform creative solutions with our in house creative team and of course our sales team.

Echelon will be a great place to show off the products and capabilities of our clients because they will be surrounded by an editorial product that is expertly crafted, full of integrity and intelligence.