About Fundamental Analysis

A framework for financial decision making : Like any other decision-making area, financial decisions involve choices between two or more possible courses of action. Financial decision making has six steps: Define objective(s).…
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Capital asset pricing model (CAPM) : If there is a borrowing/lending opportunity at a ‘risk-free’ rate, all individuals will have the same preference as to location on the efficient frontier. Individuals will achieve their…
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Capital market efficiency (CME) : CME means that the market rationally prices securities so that the current price of each security at any given moment represents the best estimate of its ‘true’ value. CME would imply that all…
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Release of Economic Data (Indicators):  1- Buy/Sell decisions can be triggered by just a single statistic. 2- Daily inventory releases. 3- Weekly Energy inventory data. 4- Weekly, Monthly and Quarterly economic data. 5- Meetings:…
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Inflation and Commodities : An important link between interest rates and currency values is commodity inflation, which, unlike an individual area or country's business activity, affects all economies. As inflation rises and prices spiral…
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Treasury Bonds, Bills, and Notes : The U.S. government issues several different kinds of bonds through the Bureau of the Public Debt, an agency of the U.S. Department of the Treasury. Treasury debt securities are classified according to…
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Fundamental Valuations : There are many nuances in the fundamental valuations of stocks, other financial instruments, and currencies and we've taken a look at the major ones. As we've seen, there are four important factors in the pricing…
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