PRN: News Corporation Share Price Falls - the Case for Fundamental Analysis?
Fundamental analysis is a style of market research which takes into account news events such as financial results, economic news, weather forecasts and political developments.
News Corporation Share Price Falls - the Case for Fundamental Analysis?
LONDON, July 27, 2011 /PRNewswire/ --
Rebekah Brooks announced her resignation as CEO of News International on Friday. By 15:44 BST the same day, the company's share price had fallen 0.56 per cent, as noted by City Index (http://www.cityindex.co.uk/).
Traders who employ fundamental analysis would have been aware of this development. Fundamental analysis is a style of market research which takes into account news events such as financial results, economic news, weather forecasts and political developments.
This means traders who speculate based solely on the trends and patterns identified in past data (technical analysis) may have been less prepared than their fundamental counterparts for the shift in News International's share price.
Herein lies the disadvantage of technical analysis - it is based only on what has happened in the past, not what is going to happen in the future or even what is happening in the present. However, fundamental spread betting is not flawless either: there are so many factors potentially affecting the markets, you cannot possibly take them all into account.
Tom Mockridge, formerly of Sky Italia, will replace Ms Brooks as News International CEO. Find out more about market-moving events with daily financial news from City Index at:
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
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