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HomeIs the Market Oversold? UPDATE
Posted by Larry Doyle on March 12th, 2009 2:28 PM |
A few weeks ago, I wrote a piece on whether the market was oversold. Allow me to re-introduce a few topics . . .
The market valuation of any asset is determined by three factors:
1. Fundamentals: measures items such as cash flow analysis, cost-benefit analysis, earnings before interest, taxes and depreciation (EBITDA)
2. Technicals: measured by regression of price movements to determine overbought and oversold conditions
3. Psychology: measured by unscientific surveys of market participants
I have never seen such divergent views on expected future earnings which directly impacts any reasonable fundamental analysis. (more…)
