The time for fundamental analysis has come back

The European Crisis demonstrated a lack of risk management in the wide sense. Fundamental analysis has been left aside. Fundamental analysis is based on the ontological structures of a functional entity and allows forecasting its behavior. When it is integrated with technical analysis it provides fully reliable information for risk management.

Fundamental analysis was an early technology to manage opportunities and risks, but mathematical solutions were consistent enough to displace and transform it into a subjective and perhaps intuitive approach to opportunity/risk management.

It has to be considered that human adaptive systems have a three dimensional structure following the ontogenetic intelligence of nature.

An ontological approach is necessary to deal with opportunities and risks in the field of adaptive systems in order to manage their three dimensional ontogenetic algorithms.

As it is known, mathematical models for adaptive systems are necessarily based on “ceteris paribus” or empirical solutions that are based on historical information with sophisticated projections.

That is why we consider that time has come to integrate technical analysis with fundamental analysis to provide reliable diagnoses and prognoses to the markets. This will surely prove a security framework that will bring relief to them.

Peter Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.