macro's xjo fair value: 4090-4271, page-8

Martis,

First of all, I don't understand your logic between buy/sell versus using an indicator as a tool. There is some grey.

I want to know what the fundamental picture of the market looks like. It may exist, but I haven't seen analysis like this, so I decided to do it for myself - and I like it (although I'm probably biased).

It is based on the same system that I use to invest in individual stocks.

I can assure you that it does work on an individual basis (based on my own experience), although it is still just a tool and requires understanding of economic factors.

Since it can work on an individual basis (although not black and white), my expectation is that it provides greater leeway when aggregated over more companies. Whilst I wouldn't necessarily invest in the ASX20 companies myself, I do want to know where the index may be headed as it tends to have an influence across all companies.

Understand that there is difference of opinion, that will always be the case when it comes to investing. I'm open to all techniques, so whilst I look at the fundamentals and sentiment, I also appreciate technical analysis.