Marketing to Sales and Trading Leaders in Investment Banking
- The first is fundamental analysis that bases a security price on corporate and economic details. The fundamental approach for a security involves the analysis of the economy, industry, and company. This applies to equities and fixed income securities. In commodities, fundamentalists study factors that affect market demand and supply. Currencies are affected by economic fundamentals such as production and inflation and by political factors as well. In futures, expectations of interest rate and cash market conditions are important. Volatility and expected direction of price movements are key in valuation.1
- The second approach is the market efficiency hypothesis, in which securities’ prices are based on all available information to offer an expected rate of return consistent with their level of risk.2
- Finally, technical analysis attempts to use information on past price and volume to predict future price movement. It also attempts to time the markets. For its purposes, technical analysis is based on several key assumptions, including:
- Demand and supply determine market price.
- Securities prices tend to move in trends that persist for long periods.
- Reversals of trends are caused by shifts in demand and supply, which can be detected in charts.
- Many chart patterns tend to repeat themselves.3
“With teams of experienced professionals and a suite of sophisticated electronic platforms, we give our clients multiple ways to strategize, track and execute securities transactions in exchanges around the world.” – Goldman Sachs Website4
1 Liaw, K. Thomas. The Business of Investment Banking: A Comprehensive Overview. 3rd ed. Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030.
4 “Sales & Trading.” Goldman Sachs. Accessed 11/25/2015, available at: www.goldmansachs.com/what-we-do/securities/sales-a...
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