Fundamental analysis is a good tool to engage at all times. It is particularly useful during a bear phase of the stock market.
When prices have fallen sharply to an unrealistic level, you could reap a handsome profit in future by using fundamental analysis to guide you in buying shares.
- First, ascertain whether stock market is in a bull or bear phase.
- If it is a Big Bear, then use Fundamental Analysis.
Ref: Making Mistakes in the Stock Market by Wong Yee
