I am down in Houston at an energy conference as I write this. I just returned from touring a Liquid Natural Gas terminal. Amazing, I'll write about it another time. I am going to take my material today from an article written by D. R. Barton in The Oxford Club Mid-Month Communique Volume 19, No. 3 published February 15, 2006.
Mr. Barton has an explanation of Fundamental, Technical and Sentiment analysis that I liked and want to share with you. I quote,
"Well, Fundamental Analysis - in terms of stocks, in particular - is built around determining the present value of a company by predicting its future cash flow. Fundamental analysts use financial statements for historical data and factor in internal influences like new-product development, management make-up and market competitiveness to determine an estimate of how the company will perform in the future.
The fundamental analysis of the futures and currency markets are similar, while focusing more on supply and demand and external factors such as weather and governmental policies.
