Intro to Fundamentals

    Cards (6)

    • What is fundamental analysis ?

      Type of analysis that is based on looking at the intrinsic value of an investment
    • How do we find the fundamentals ?

      We need to look at the economic conditions that affect the valuation of a nation's currency

      1). what makes a currency valuable
      2). What hurts it's value
    • 3 Major Factos
      1. Central Banks
      2. Economic Data
      3. Political and Geopolitical Events
    • Central Banks
      1. Controls Monetary Policy
      2. Interest Rates
      3. Monetary Policy (Printing money)
      *Main purpose is to maintain a balance between employment and inflation
    • Economic Data
      1. Inflation
      2. Unemployment
      3. Retail Sales
      *Paints a picture of the overall health of an economy
    • Political and Geopolitical events
      1. Physical war
      2. Trade Wars
      3. Political Drama