| In a previous article we learned that
| |
| | they are influenced by interest rates.
|
| fundamental and technical analyses are
| |
| | * Visit and to see how the investment
|
| two types of research to do. Technical
| |
| | world is doing.
|
| analysis is the most popular but
| |
| | Industry analysis: Now it's time to turn
|
| fundamental analysis is the better kind
| |
| | your attention to the general industry in
|
| because it looks at a variety of factors
| |
| | which your target stock operates. If they
|
| to help you make good decisions. In this
| |
| | fabricate steel for automakers, don't
|
| article, we're going to look more closely
| |
| | just look at how other steel fabricators
|
| at fundamental analysis and see what you
| |
| | but also consider how automakers are
|
| want to look at if you want to perform
| |
| | doing. Consider, also, their suppliers.
|
| good fundamental analysis.
| |
| | If you are looking to buy stock in a home
|
| Start at the top: Find out how the
| |
| | building company, consider the price of
|
| economy as a whole is doing. Is it good?
| |
| | lumber. Is it going up or down? If it
|
| Is it rough? Is the current situation
| |
| | goes up, will that put a squeeze on
|
| going to last for a while? Don't look
| |
| | profits?
|
| just at the economy of the country your
| |
| | * Visit
|
| target stock's company is in... don't
| |
| | Company analysis: Next, turn your
|
| forget to look at the countries where the
| |
| | attention to the company itself. Who is
|
| company does a majority of its business.
| |
| | the management team and what is their
|
| A strong economy in the US, for example,
| |
| | experience in the company and the
|
| won't necessarily save a company who
| |
| | industry? What is the financial history
|
| exports a majority of its products to
| |
| | of the company itself? Check to see if
|
| Japan... if their economy tanks. Consider
| |
| | they serve only one industry or several
|
| government decisions like fiscal and
| |
| | because the diversity of several clients
|
| monetary policy.
| |
| | among different industries will help to
|
| * Visit and the sites of the individual
| |
| | weather economic downturns. How is the
|
| banks to get a handle on the economy.
| |
| | company perceived among the buying
|
| Drill down: Now that you've got your
| |
| | public?
|
| finger on the pulse of the economy, drill
| |
| | * Visit and browse for the company and
|
| down to just the investment world, which
| |
| | visit the company's website.
|
| can drive the economy. Is the Dow Jones
| |
| | Fundamental analysis seems like a lot of
|
| rocky right now? Is the S&P 500 trending
| |
| | work at first... and it is... but it
|
| upwards? Is the NYSE dipping? Looking at
| |
| | won't always be that way. Spend a few
|
| exchanges and indexes will help you get a
| |
| | hours getting to know the information
|
| handle on the investment world. If you're
| |
| | then just a few minutes a day monitoring
|
| looking at buying bonds, remember that
| |
| | it.
|
