i can see clearly, now...., page-11

I think the flaw with fundamental analysis after following it for quite a long time myself is that the analysis of a fair value is a stagnant snapshot. The flaw with it is because depending on the analyst view he can rightly justify a PE ratio of 5 or even 20 and he can manipulate a fair price to be higher or lower in accordance to his feelings and views.

Also another flaw with fundamental analysis is the the price of race earth is not stagnant, the price can shoot up very higher or very low and thus fair value constantly fluctuates and what complicates it is that no analyst can agree what is a fair and realistic PE ratio.

And then it becomes complicated because the buyers or ree can react very emotionally which was what happened when CHinadecided to cut supplies and then this caused panic buying by manufacturers and then speculators hopped on which lead to the crash and then pessmism and then the cycle starts all over again

After deep thought about it i have decided to follow what matters which is price action flow.