In Fusion Analysis, You’ll learn how to capitalize on the repeating nature of investment psychology―and avoid the emotional fallout that can rattle the market. You’ll learn how to strengthen and diversify your portfolio with strategic buys such as gold and other metals. You’ll learn how to identify future growth companies, evaluate real-estate opportunities, and evaluate your assets for the bigger picture. Once you fuse a strategy together, you can adjust your risks for the highest return possible. In today’s market, you need more than one strategy to grow your investments. You need the full-range potential of Fusion Analysis.
Author’s Note:
This book describes the blending of major investment disciplines into one. This approach is not commonly used in mainstream investing, but, in my opinion, it can offer advantages to investors that each discipline on its own cannot. The investment discipline includes the proprietary blending of fundamental, technical, and behavioral disciplines into a quant model. I call this investment process Fusion analysis (not to be confused with other uses of the word “fusion” that permeate the world today in areas such as making lipstick, cars, and cuisines). The Fusion blending is both exciting and challenging, as it covers uncharted territory.
When some investors say they find it hard to justify using technicals with fundamentals, one can only be amused. Some fundamental strategies already incorporate technicals, behavioral, and quant through the back door. For example, a value low P/E strategy already has a quant criteria. The low P/E could be low because investors are already cautious of the fundamental outlook and their pessimism means they will not bid up the price. And high P/E could be the opposite, as great expectations and bullishness mean that they may be willing to bid up the prices beyond the true fundamental requirements.
Some investors then claim, “We tried fundamentals and we tried technicals and putting them together, they don’t work. We’ll just stick with fundamentals.” Such a statement is akin to a football coach saying, “I tried offense and I tried defense, but putting them together they don’t work. So I will only do offense.” Most likely the blending of analyses didn’t work for these investors because, at times, technicals and fundamentals will contradict each other. When the fundamental news is bad, the technicals may be very good. Investors therefore need to know how to blend these analyses, and for this reason, I use quant. Think of it this way: If you have a button and fabric, they will not magically be joined together. You’ll need the thread to sew the button to the fabric. Consider that thread the quant portion of the Fusion process.
Contents:
Fusion Analysis: Merging Fundamental and Technical Analysis for Risk-Adjusted Excess Returns By V. John Palicka pdf
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