Introduction to Fundamental Analysis
The Basics: Qualitative & Quantitative Factors
Qualitative vs. Quantitative
The Concept of Intrinsic Value
Trading Crude Oil Binary Option with Fundamental Analysis
Conclusion
Patience may be virtue, but impatience can frequently be profitable.
The attempt to determine future share price movement and its reliability by references to historical data.
Patience may be virtue, but impatience can frequently be profitable.
The attempt to determine future share price movement and its reliability by references to historical data.
This is a Presentation by Mr. Omkar Godbole & Mr. Aditya Dasgupta, for the purpose of financial training.
Please do not replicate without proper consent from the team of Total Package Project Associates.
Total Package Project Associates is into Business Auxiliary Services, and facilitates for the main dimensions for new and existing businesses. The following are our main activities :
- Project Financing / Financial Advisory (Equity / Currency Segment)
- IT Infrastructure Development
- Marketing Solutions
- Recruitment / Training & Development
- Operations Strategy (Start Up, Doc ! Project Blueprints)
Disclaimer : Total Package Project Associates is a proprietary concern registered in accordance with Municipal Laws of Mumbai (Maharashtra, India). For more information please mail us on director@totalpackageprojects.com or aditya@totalpackageprojects.com.
In this paper I have shown by adopting a strategy that fuses the trend-following nature of technical analysis and the stage identification features of behavioral analysis investment decisions can be enhanced. We see that there are repeatable behavioral tendencies that have existed since exchanges were first put in place.
Technical Analysis Explained
Trends in Technical Analysis
Trend Classifications
Support & Resistance
Technical Analysis Indicators
Using the MACD to trade the EUR/USD
This is a Presentation by Mr. Omkar Godbole & Mr. Aditya Dasgupta, for the purpose of financial training.
Please do not replicate without proper consent from the team of Total Package Project Associates.
Total Package Project Associates is into Business Auxiliary Services, and facilitates for the main dimensions for new and existing businesses. The following are our main activities :
- Project Financing / Financial Advisory (Equity / Currency Segment)
- IT Infrastructure Development
- Marketing Solutions
- Recruitment / Training & Development
- Operations Strategy (Start Up, Doc ! Project Blueprints)
Disclaimer : Total Package Project Associates is a proprietary concern registered in accordance with Municipal Laws of Mumbai (Maharashtra, India). For more information please mail us on director@totalpackageprojects.com or aditya@totalpackageprojects.com.
In this paper I have shown by adopting a strategy that fuses the trend-following nature of technical analysis and the stage identification features of behavioral analysis investment decisions can be enhanced. We see that there are repeatable behavioral tendencies that have existed since exchanges were first put in place.
Technical Analysis Explained
Trends in Technical Analysis
Trend Classifications
Support & Resistance
Technical Analysis Indicators
Using the MACD to trade the EUR/USD
The presentation explains that overall fundamental analysis in a company like economic, industry, and company analysis its gives a brief explanation about that.
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.
CHAPTER 12: THE TRADING PLATFORM & TYPES OF TRADING CONTRACTSanyoption
Profit Line Feature
Take Profit Feature
Get Quote Feature
Roll Forward Feature
Payout Percentages Option
Market Sentiment Indicator
Mobile Trading
Types of Trades Available
http://www.forexconspiracyreport.com/usd-falls-as-default-approaches/
USD Falls as Default Approaches
One might think that it is a Forex conspiracy revealed as the USD falls as default approaches on United States sovereign debt. There is a stated reason for House of Representatives blocking a new budget and threatening to let the United States default on its sovereign debts. It is allegedly all about Obama Care, the health insurance program intended to guarantee health insurance coverage to all Americans. The stated complaint is that everyone will have to sign up and pay for some sort of health insurance. Because a small group of politicians do not like the law they are apparently willing to wreck the Federal Government rather than let a law that was passed by both houses of Congress and signed by the President take effect. Well, here is a Forex alert. There could well be more than meets the eye to all of this. Is this really a Forex Conspiracy? We could not conceive of a better plot for a Cold War spy novel by the recently deceased Tom Clancy. . . Hidden behind a lot of political posturing is a plot to bring down the US dollar, the international currency trading system, and international commerce. . .
Fundamental analysis and How to Use it in Forex TradingKeith Weber
The success of a Forex trader depends on many aspects. Among them is the ability to comprehensively see the situation in the financial market. Fundamental analysis is one of the main types of market’s analysis. It represents a deep study of the political and financial situation in some important countries.
The financial situation of every country forms the rates of the national currency. Traders who trade according to the fundamental analysis must always be aware of political situation of the world major countries. A trader is getting familiar with the economical or political situation in the certain countries. After that he or she concludes whether there is a potential for a national currency to go up or down. Basing on this conclusion, a trader makes a trading decision for buy or sell. This is how the fundamental analysis works.
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Fundamental Analysis is defined as “researching the fundamentals”, that doesn’t convey the whole in the absence of knowledge about what fundamentals are. The big problem with defining fundamentals is that it can include anything related to the economic well being of a company. Thus, fundamentals include everything from a company’s market share to the quality of its management
Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't really investing if you aren't performing fundamental analysis. Because the subject is so broad, however, it's tough to know where to start. There are an endless number of investment strategies that are very different from each other, yet almost all use the fundamentals.
Analyzing the Fundamental and Behavioral Aspects of IPO Valuations by Compari...ijtsrd
Initial Public Offer IPO is one of the most preferred strategies for companies to go public and now a days we can see a lot of people just applying for the listing gains sometimes without even knowing the name of the company. So, the purpose of this study was to critically analyze whether the valuations given by merchant bankers or the price band set by them is justified or there is a significant difference between price set by them and that perceived by market forces. Descriptive research with secondary data and primary was carried out, correlational, multiple regression and hypothesis testing was used on data for the last 3 year IPO’s in the Indian stock market. IPO price band is compared with the listing price and price after few months to judge the fairness of valuations given by merchant bankers and analyze whether there was an overreaction, under reaction or an optimal reaction on the price given by the merchant bankers. Further analysis has been done to know whether there is a difference in the way the market reacts to companies doing traditional business and technology or new age companies. Lavan Jain | Richa Phirke | Jigar Bhajiawala | Khushi Aslam | Shloka Tibrewala "Analyzing the Fundamental and Behavioral Aspects of IPO Valuations by Comparing Merchant Bankers’ and Market Valuations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-5 , August 2022, URL: https://www.ijtsrd.com/papers/ijtsrd50578.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/50578/analyzing-the-fundamental-and-behavioral-aspects-of-ipo-valuations-by-comparing-merchant-bankers’-and-market-valuations/lavan-jain
Randy Kerns, CIC, ChFC • Voya Financial Advisors Inc.
- Why passive investors get hammered by Mike Posey
- Can it really be earnings season already?
- What oil's plunge and the strong Dollar may mean for 2015 by Jeanette Schwarz Young
- Active management as a practice differentiator (John McGonagle, CFP, CRPC, Asset Architects LLC)
Capítulo 9: Tácticas y Estrategias de Comercio en Profundidadanyoption
Tácticas y Estrategias de Comercio en Profundidad
Estrategias para Principiantes
ESTRATEGIA DE FUGA DEL TRIÁNGULO
PATRONES DEL TRIÁNGULO
TRIÁNGULO SIMÉTRICO
ESTRATEGIAS INTERMEDIAS
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. To many investors, Fundamental analysis is the cornerstone of investing. For the investor, the goal of
having fundamental analysis is to try to discern the intrinsic value of the security that he is interested
to invest in and compare that value with the current market price of the security.
If the comparison shows that the security is undervalued, then the right move would be to buy.
However, if the comparison shows that the security is overvalued, then he should move to sell.
Fundamental Analysis | Page #2
3. THE BASICS: QUALITATIVE & QUANTITATIVE FACTORS
With the equity market in mind, at the very core, fundamental analysis involves researching everything that affects
the wellbeing of a company as well as all those factors which can affect the wellbeing of the industry which the
company is in.
All the above mentioned factors that can affect the fundamentals of a company can be classified into qualitative
and quantitative factors. Qualitative factors are all those factors which are related to the qualitative nature of a
company. This may include the vision of the CEO or the value of the company’s brand etc. It can also relate to
acquisitions made by the company which in turn could expand the company’s business or burden it with additional
dead weight.
As for quantitative factors, these include data that can be measured such as the cash flow, the liabilities, the profit
earned by the company, in short the financial statements of the company.
Fundamental Analysis | Page #3
4. QUALITATIVE VS. QUANTITATIVE
While it is only natural to ask if qualitative or quantitative factors will give a fundamentalist a better picture of a
company’s worth, most fundamental analysts do not make their analysis without considering both factors
together. For example, when analyzing the value of Apple’s stock, the analyst will study the dividend paid out to
the shareholders, the P/E ratio and earnings per share. But his analysis will be incomplete if he doesn’t take into
account the value of the iPhone brand.
Nowadays, there are hundreds if not thousands of companies around the world which are capable of producing
smartphones. However, none of these companies can claim that their brand is as recognizable worldwide as the
iPhone brand. Although it is difficult to put a numerical value to the iPhone brand, it cannot be denied that it is
one of the main reasons why customers queue up for days to get their hands on the latest iPhone.
Fundamental Analysis | Page #4
5. THE CONCEPT OF INTRINSIC VALUE
One of the core assumptions of fundamental analysis is the belief that the stock market does not always reflect the
true value of a stock. If the stock market was 100% efficient in the valuation of a stock, then it would be pointless to
do anymore market analysis. But we know this is not always the case and hence the need to conduct a price analysis
on the security that we are interested to invest in.
The intrinsic value of stock is defined as the value of the stock after one has taken into account all the qualitative and
quantitative factors that might affect its value. For example, the intrinsic value of Apple’s stock can be said to be
when one takes into account the performance of the company as indicated by its financial statements and the
perceived value of its brand worldwide.
Fundamental Analysis | Page #5
6. Another core assumption about fundamental analysis is the belief that in the long run, the market will always reflect
the fundamentals. The time scale can range from 2 years to even a decade. Nobody really knows how long the time
line can be.
The key point is when one invests based on the fundamentals; it should always be for a significant period of time.
After all, there is no point investing in something when the market price does not reflect the intrinsic value.
Fundamental Analysis | Page #6
7. FUNDAMENTAL ANALYSIS IN BINARY TRADING
Once we understand the basic concepts of fundamental analysis, we can start to use this tool to help us
analysis the market that we are interested to trade. Because binary trading covers 4 major asset classes, the
fundamentals affecting each class of asset is different. For example, interest rates, GDP data and
unemployment figures are the key quantitative factors which currency traders pay heed to.
Fundamental Analysis | Page #7
8. TRADING CRUDE OIL BINARY OPTION WITH FUNDAMENTAL ANALYSIS
Now let’s take what we have learnt about fundamental analysis concepts and apply
them to the crude oil market. According to fundamentalists, the price of crude oil is
affected by its supply and demand situation.
Fundamental Analysis | Page #8
9. In order to determine the total supply and demand in the crude oil market, what traders do is made a
collective estimation as to what the likely supply and demand would be in the foreseeable future. So what are
the factors which can affect this collective estimation?
RELATED ECONOMIC NEWS
The U.S Strategic Petroleum Reserve (SPR)
holds roughly 700 million barrels of oil.
Hence, when the White House recently
announced that it was releasing 5 million
barrels into the market, the news surprised
the market and prompted oil prices to drop
by $2/- (their lowest in 2 months) within
days of the announcement. While the move
by the White House may be seen by some
analysts as applying political pressure on
Russia following its annexation of Crimea,
there is no doubt as to the economic effect
that the news had on the crude oil market.
Fundamental Analysis | Page #9
10. CHANGING CONSUMPTION PATTERNS
Any report which concerns changes in the consumption pattern of crude will have a direct impact on the perceived
demand for crude oil. Consequently, this will result in falling oil prices.
For example, a survey shows that people nowadays prefer hybrid cars to fuel guzzling muscle cars or SUV. Since
hybrid cars are more economical, this will result in falling demand for gasoline and ultimately crude oil.
Fundamental Analysis | Page #10
11. GEOPOLITICAL UPHEAVAL
Any geopolitical upheaval that involves oil producers will result in panic in the crude oil market and hence pushing
demand up which will result in skyrocketing prices.
For example, the Ukraine crisis and the fear that Russia, a major oil producer, might be affected by trade sanctions
had helped push crude oil prices up in recent months.
Fundamental Analysis | Page #11
12. TECHNOLOGICAL BREAKTHROUGH & ALTERNATIVE ENERGY
While this might not have an immediate effect on crude oil prices, technological improvements which lower the cost
of alternative energy such as solar power will definitely impact the future demand for crude oil.
Fundamental Analysis | Page #12
13. ECONOMIC GROWTH REPORTS
Since oil is the fuel which helps power economic growth, any slowdown in the economic growth of major economies
such as China, Japan, India and U.S will result in the traders having to revise their estimations of future crude oil
demand in the market.
As you can see, from a fundamental analysis point of view, almost any factors can affect the price of crude oil. So as a
beginner commodity trader, it is best that you focus on one particular asset class and preferably on one asset as well
when you are trying to analyze the market using fundamental analysis.
CHINA JAPAN INDIA U.S.
Fundamental Analysis | Page #13
14. CONCLUSION
At the end of the day, fundamental analysis is all about using data to value the worth of a security. For many investors,
fundamental analysis plays a crucial in the success of their investment strategies making them extremely rich. One
famous name within the financial circles that employs fundamental analysis in helping him to pick profitable
investments is the “Oracle of Omaha”, Warren Buffett. From his track record, we know fundamental analysis is a topic
that no aspiring financial trader can afford to ignore.
Fundamental Analysis | Page #14