Fundamental analysis, or FA, is the analysis of a company’s financial statements, the said company’s environment (including strengths and competitors) and the whole economy in general. Hence, for The Bedokian Portfolio, FA is done over three levels that consisted of the company at the lowest, followed by environmental factors, and then economic conditions at the highest.
There are many financial sites providing the latest figures and ratios of a company. There are a few places where one could look up on market data of the sector/industry where the company is in. Also, there are country data showing the latest economic information such as gross domestic product, interest rates, etc. Usually in an FA, some, most or all these numbers are gathered, crunched together, and the results interpreted to make the decision of whether to go into the counter.
Yet, the biggest challenge comes not from the above, but rather the greatest unknown factor of...