Does Economics Matter?

[achilles28]

Quote from ShoeshineBoy:

This is exactly what I was getting at. I think you should everything to your advantage including the fundamentals of the company itself if you are trading stocks.

Some believe that charts/technicals reveal the underlying fundamentals and I can't really argue with that. I can only say that backtesting and experience have shown that fundamentals, i.e. getting those tailwinds, can make a significant difference.

Absolutely. Use whatever makes sense (to you) that works.

The great examples from other members illuminate how fundamental events can translate into dollars.

My personal take - fundamentals are key to predicting market turning points - from bull to bear and bear to bull.

As an investors understanding of the micro and macro mature, windows of opportunity multiply. Tough to do in practice, however.

 

[maxpi]

I spent many hours with a fundamentals database and a screener back in the day, searching for a fundamental, anything at all, that would affect price in the one day overnight hold horizon... nada, zip, nothing...

 

[ShoeshineBoy]

Quote from maxpi:

I spent many hours with a fundamentals database and a screener back in the day, searching for a fundamental, anything at all, that would affect price in the one day overnight hold horizon... nada, zip, nothing...

Well, if you take a large universe of stocks and back test certain long swing trading strategies with the best stocks fundamentally, it does improve results both in backtesting and in real life from my experience.

But backtesting is tough because, as far as I know, noone has backdated fundamental data. So you're, in effect, creating a biased cohort.

But still I have found that to be true in real life as well even tho it is difficult to test completely...