Fusion Analysis

ABOUT THE COURSE

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.

WHO SHOULD ATTEND?

• Financial Journalists
• Wealth Managers
• Asset Managers
• Equity Research Analysts

Duration

One Day. (This course can be delivered over two days in-house)

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.