What does fundamentals mean in 2021?
In the stock market, many people are asking what fundamentals mean. In fact, the meaning is very simple. Fundamentals refers to the macroeconomy and industry. and analysis of the company's basic situation, including analysis of the company's business philosophy, strategies, company reports, etc. Below is what the editor has compiled for you about what the fundamentals mean. I hope it can be helpful to you.
What does fundamentals mean?
Fundamentals include the macroeconomic operating situation and the basic situation of listed companies. The macroeconomic operating situation reflects the overall operating performance of listed companies and sets the background for the further development of listed companies. Therefore, the macroeconomics is closely related to listed companies and their corresponding stock prices. The fundamentals of listed companies include financial status, profitability, market share, operation and management system, talent composition and other aspects.
Analytical stance: Investors’ fundamental analysis of the foreign exchange market is different from that of the stock market. Fundamental analysis of the stock market, in addition to evaluating macro-national economic policies, also requires analysis of relevant financing strategies, incentive distribution policies, operating conditions, etc. introduced by enterprises to determine the trend of stock price changes.
Since changes in exchange rates are the result of changes in the overall economic conditions between two countries, when analyzing the foreign exchange market, investors must analyze the country's political and economic situation as a whole, that is, from a macro perspective, and abandon Microeconomic analysis.
Analyzing economic data: Investors’ fundamental analysis of foreign exchange trends is an analysis of a series of national economic data. Different countries have different economic data related to changes in foreign exchange rates. You should know the names of the fundamental data of each country and the impact of changes in these data on the exchange rate.
What are the fundamental stock selection tips
1. The stock price is stable and the trading volume is shrinking. In the short market, everyone is optimistic about the market outlook. Once the price of a stock is stable and the volume is shrinking, it can be bought. In addition, the market will move after a long period of time. After the main force has absorbed enough chips and cooperates with the general trend to pull up a little bit, investors will intervene. A large-volume breakthrough here means that there will be a period of surge, and the first batch of huge long-term gains should be bold. Buy, intervention at this time will be fruitful.
2. When there is an obvious breakthrough at the bottom, it is the time to buy. When the stock price is in the low price zone, the right shoulder of the head and shoulders bottom pattern is completed. The short-term breakthrough point is the buying point. The same is true for W bottom. However, when the stock price continues to soar and reaches a relatively high level, a W bottom or head and shoulders bottom pattern appears. It is better to intervene less. When the arc bottom forms a 10% breakthrough, you can boldly buy. It should be noted that never buy stocks that you are not familiar with.
How to study stock fundamentals
Understand the basic situation of the company. The company profile includes industry research such as industry attributes, market share, competitors, macro policies, etc. It also includes historical and current analysis of the company’s historical evolution, actual controller, main business, management team, etc., as well as financial analysis, such as past Revenue and profits, assets and liabilities, cash flow situation, etc. The basic situation can be based on public market information, which is relatively easy to get started. It does not require you to make judgments. It only requires an objective understanding and a comprehensive understanding of the company's past profit model.
2. Predict the company’s future performance. The company profile is for the past, so the performance forecast is for the future. This is the most difficult part of the research process. This requires you to have a process of processing past data. You need to extract key data and analyze the company's business layout and market. There is an accurate judgment on share. The stock and increase are reflected in the financial results at the same time. How much can be turned into revenue and how much is finally converted into profit. Only if you can predict the company's performance in the next three to five years can you show that you are familiar with it. Only by joining this company can you avoid doing anything you are not familiar with, otherwise it will all be speculation.
3. Evaluate the company’s value. Performance is the premise of valuation. If the performance forecast is inaccurate, then the valuation will be biased. Valuation must take into account market conditions, that is, it must be able to judge whether the current market is overvalued or undervalued, and whether the future market will be How will your preferences change, what level should be normal, and what range should be the reference target.
If the performance forecast is accurate, the valuation will be basically close to eight or nine, but there are also human factors, and a sufficient margin of safety must be retained, that is, a certain discount must be made for insurance purposes