Fusion Analysis

The Investment discipline needs to take account of a blend of approaches – Fundamental, Technical & Behavioural. Fundamental Analysis will provide the investor with an opinion on valuation, but not necessarily any input on the timing of entry & exit points.

Finally, one of the traditional building blocks of Efficient Markets – the assumption of rational Investors – has now been seriously questioned since the emergence of Behavioural Finance as an accepted discipline. Technical Analysts have long questioned another – the concept of random walks. Fusion Analysis may be the answer.

Learning Objectives:

• In pursuit of Price discovery – A Fusion of numbers, patterns & human behaviour

• Efficient Markets & Rational Investors – a recap; but are they?

• Rational decision making vs instinct & intuition. The madness of crowds

• Prospect Theory, Fear of Regret, Heuristics, Framing

• Cognitive behavioral biases – Anchoring & extrapolation, Base Rate Neglect

• What is the correct Valuation methodology to use? It depends on the sector

• The love affair with the Price-Earnings Ratio. A better tool – PEGs

• Valuations derived from Dividends

• How to value Financials – Price/Book Values

• How to value Manufacturers & Retailers – EV/Sales

• Technical Analysis – What is it all about? Timing your entry & exit points.

• Classic patterns to watch out for – Channels, Breakouts, Head & Shoulders

• Moving Averages

• Relative Strength Indicators (RSI)

• Candlesticks

• Generating a ‘Fusion’ decision

  • Scaling the Fundamentals to generate Buy & Sell signals

  • Scaling the Technical Indicators to generate Buy & Sell signals

  • Blending & Weighting the trigger indicators

Prerequisites:

This course has no prerequisites.

Who Should Attend:

• Financial Journalists

• Wealth Managers

• Asset Managers

• Equity Research Analysts