value investing
Value investing philosophy comes in antithesis with the efficient markethypothesis. For value investing to be a valid investment strategy, one should assume that markets are not even close to efficient.
The inefficient market also means that technical analysis is not working. Value investors use a very small amount, if any, of technical analysis, maybe just to plan their positions. Instead, value investing’s most used tool is fundamental analysis, meaning the analysis of the financial statements of a company.
The inefficient market also means that technical analysis is not working. Value investors use a very small amount, if any, of technical analysis, maybe just to plan their positions. Instead, value investing’s most used tool is fundamental analysis, meaning the analysis of the financial statements of a company.
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