Mapping the Markets: A Guide to Stockmarket Analysis

Fundamental analysts weigh up all the relevant economic variables and then make a judgment as to whether the current price of a share or market represents what they have calculated to be “fair” value or whether it is overvalued or undervalued compared with what they perceive to be the “correct” level. Technical analysts believe that, at any particular time, the price re?ects everything that is known about a market or stock. Furthermore, since markets essentially re?ect human behaviour and since human behaviour is broadly consistent over time, there is a tendency for price behaviour to follow similar patterns. Prices, therefore, move within trends which appear more often and persist for longer than the laws of chance would allow. This book aims to explain not only how cycle theory links the disciplines of fundamental analysis and technical analysis,but also how cycle theory can be used to navigate successfully through the changing global economic landscape.