An appraisal of the popularity of fundamental and technical analysis as decision making tools for investing in the equity markets by portfolio managers working for large institutional investors in South Africa.

Description

The literature reveals that, behavioural finance lends some support to the
methodologies of both fundamental and technical analysis. Behavioural Finance
supports the concept of investment behaviour being grounded in two dimensions,
viz., the dimensions of emotion and rationality. The evidence, presented in the
literature suggests that fundamental analysis is grounded in the rational investor,
while technical analysis is an attempt to model the behavioural side of investing
through trend following, charting and the use of indicators (e.g., momentum,
stochastic, etc.).
Typically large investment houses tend to use both technical and fundamental
analysis; technical analysis appears to be used primarily for timing, while
fundamental analysis is used to establish intrinsic or fair value of the share under
focus – thus making it easy to establish whether the share is cheap or expensive.

Links & Downloads

1. http://hdl.handle.net/10500/211

Tags

Equity markets

Portfolio management

Investments

Technology for competitiveness

Additional Fields

Identifer	oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/211
Date	11 1900
Creators	Essop, Yusuf Mahomed Moosa
Source Sets	South African National ETD Portal
Language	English
Detected Language	English
Type	Thesis