Fundamental analysis is of some value. We need to take as many objective measurements of markets and prices as possible to navigate our capital through risk assets. The trouble comes when we build our investment case on fundamental arguments without taking into account what price is really doing. This is where I find technical analysis (TA) to be a helpful tool. TA used properly can help us to not lose our grip amid our own arguments and opinions. It keeps us focused on reality rather than on our hopes and beliefs.

This brings me to the trouble with assessing the price or "P" when the "E" or earnings are in a free fall...   more »