Fundamental Analysis Versus Technical Analysis
Fundamental analysis influences 90 percent of all investment decisions. For
the long-term investor, it is the reasonable basis for committing long-term
funds. Yet, is it the way to maximize returns? Consider what is involved
when analyzing the future potential of a stock price. Projecting the future of
a company’s capabilities has hundreds of different variables. Is the management
capable? Is the product line sustainable? What are their competitors
doing? How are government regulations affecting this industry? Any one of
many fundamental elements can change at any time, creating a reversal in
the growth potential of a company.
Most financial “experts” advise buying the good quality company and hanging
on to it for the long term. The stock market has averaged approximately
Fundamental analysis influences 90 percent of all investment decisions. For
the long-term investor, it is the reasonable basis for committing long-term
funds. Yet, is it the way to maximize returns? Consider what is involved
when analyzing the future potential of a stock price. Projecting the future of
a company’s capabilities has hundreds of different variables. Is the management
capable? Is the product line sustainable? What are their competitors
doing? How are government regulations affecting this industry? Any one of
many fundamental elements can change at any time, creating a reversal in
the growth potential of a company.
Most financial “experts” advise buying the good quality company and hanging
on to it for the long term. The stock market has averaged approximately