Forum Topics Technicals and ceteris paribus
Barium
3 years ago

I am a fundamentals person and have little time for technical analysis, but I thought I'd reconsider my position and so put it out for comment. 

The timeframes of the two methods are different. Fundamental analysis is necessarily long-term, as it considers the fundamentals of a company or its sector. Technicals just look at the short term.

I suspect this is what intensifies my concerns. Technical analysis assumes stability, or to use the Latin phrase ceteris paribus -all else being equal. The problem is that we live in days of disruption that technical analysis cannot accommodate. I saw this today with Commsec's technical analysis of A2M. The whole sector is experiencing an untick based on Bubs results, but technicals cannot include this. 

In these days of disruption, we tend to make purchases or sell based on opportunities that are sudden and unpredictable, and technicals can't help with that. 

Anyway, over to others for your thoughts

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