Open every new article and it seems everyone is predicting ‘doom and gloom’. Do I think so as well?
This is a question I am constantly asked by my blog readers which is why I wrote a piece several months ago post the Greek Debt crisis titled, Is Another Global Financial Crisis Starting Now?.
Sure the technical charts seem ugly, but the reality is, fundamentals are what drive value and prices in the long term, and not charts. Using technical charts before fundamentals is like having the tail wag the dog. I like to use both, but my priority is always fundamental analysis first, then technical analysis second.
I will repeat myself here again. I don’t like to predict because I am usually right in the short term only 50% of the time, which really isn’t much of a prediction, but go medium to long-term, and my probability of being right dramatically improves.
What I do like to do is look at the market as well as stock fundamentals and investigate if there exists any catalyst which will drive the markets down hard and truth is, I haven’t yet found one.
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