Comparison study of Fundamental Analysis And Technical Analysis

• Main Authors: Yi-Tien Cheng, 鄭宜典
• Other Authors: 陳育成
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/21761946621550793616

碩士 === 中興大學 === 會計學研究所 === 95 === Investors are always eager to predict future stock price which can cue them what and when to buy in the stock market. In the past, there are two different ways that are used by investors to select target stocks- fundamental and technical analysis. In this study we will evaluate the effectiveness of the two approaches by conducting trading simulations. The empirical result in this paper shows that the investment portfolio which is formed according to fundamental analysis performs much better than MSCI Taiwan Index and TSEC Taiwan 50 Index. In other words, investors can acquire larger return by adopting fundamental analysis when selecting target stocks. On the other hand, technical analysis can not help investors create handsome return, according to the simulation result. However, facing the uncertainty of future direction in stock market, investors can use both fundamental and technical analysis at the same time to reduce loss. Despite the dismal return of the stock portfolio that is constructed by technical analysis the approach is not necessarily useless. Likewise, fundamental analysis does not definitely refer to panacea for investing. Contrarily, there is no absolute rule for investment. Investors have to tailor their investment portfolios under different conditions.