Fundamental analysis means understanding why the price of an asset may go up or down by looking at the economy, world events, industries, and companies.

1. Macro Economics

Macro analysis looks at the whole economy and the world.

Global Events

World events can move markets:

• Russia–Ukraine war
• COVID-19
• US–Iran tensions
• USD strength or weakness
• Central banks buying gold

Economic Data

Important economic numbers:

• CPI: Shows inflation.
• Interest Rate: Higher rates can support a currency.
• GDP: Shows economic growth.
• Unemployment: Shows the strength of the job market.

Industry Future

Think about what industries may grow in the future.

Example:

• Petrol cars → Electric vehicles
• Chemical fertilizer → Organic/bio/natural fertilizer

Will this industry grow or decline in the future?

2. Micro Economics

Now study the individual company.

Look at its financial report:

• Sales: How much it sells.
• Revenue: Money coming into the business.
• Net Income: Profit after expenses.
• Cash Flow: Actual cash generated by the business.
• Debt: How much the company owes.

Easy Fundamental Analysis Process

World → Economy → Industry → Company → Decision

For trading, focus more on economic data, global events and company expansion news. For investing, focus more on company performance and industry future.