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Fundamental Analysis.
Fundamental Analysis.
Fundamental analysis is a set of actions based on the study of factors and influences that affect securities, goods, companies, industries, and the macroeconomic situation in the world. For a rational distribution of efforts and the most efficient use of time and opportunities, you need to understand the mechanism of fundamental analysis clearly, and also know when and where you can expect the beginning of the movement, the time of trading sessions, reduced activity, and even lunch breaks at the world’s leading exchanges.
Financial markets have some element of spontaneity: some events, changes, and catastrophes inevitably lead to fluctuations in exchange rates and quotations. These changes can be long-term (for example, during economic crises) or affect the market in only a few minutes – it all depends on the event's essence and impact.
Fundamental Analysis. Research Methods.
Indicators
Indicators characterizing the state of the financial market of the country. These indicators characterize the potential and current profitability of investments of investment institutions in assets denominated in the national currency, as well as current or potential interest on the part of investors in equity and fixed-income assets (bank deposits, government, and corporate bonds).
Indicators of the dynamics of production and trade. This data characterizes the state and prospects of development of the production and trade sectors of the country’s economy, including domestic demand in the country and the willingness of companies and individuals to spend money, the level of development of industrial production, and its dynamics.
Indicators of monetary policy of the economy. Monetary policy indicators are among the most important. They show what policies the government intends to pursue under this stage of the economic cycle and what methods it uses. These indicators include mandatory reserve nominations, refinancing rate (s) shown by the ministry of finance or central bank operations on the open market, and changes in monetary aggregates.