Fundamental Analysis

Fundamental Analysis is a basic analysis that measures how different aspects can affect the price of an asset by observing the underlying items of an operator or economy. What it does is try to predict the future prices and trends with reference to economic data, government policies, and so on. Meaning that, a wide range of data and events are examined on how they may create or affect a trend or even how they may impact a certain industry. Events can range from interest

rate changes made by the central bank to natural disasters. For such reasons, the market is in constant motion. Common Economic Indicators are unemployment rates, Interest Rates, and Gross Domestic Product. For instance, the unemployment rate is a good indicator of a country’s economic situation. In addition to the Fundamental Analysis, however, it is also important to determine other factors that may also affect a trend.