Fundamental analysis
Fundamental analysis basically is the study of supply and demand. The fundamentalist says that the cause and effect of price movement is explained by supply and demand.
 | For example, if new copper mine-production is 300,000 tons, manufacturing demand is projected to be 400,000 tons, and “above-ground” supplies available to the market are 50,000 tons, the fundamentalist projects a coming supply deficit of 50,000 tons. |
Therefore, the conclusion is that price must rise to ration or diminish this impossible level of demand. Fundamental analysis appeals to our logic. After all, if Brazil is suffering through a drought during the ...
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