Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

by Michael E.S. Gayed

Written in 1990 and re-released with a foreword by Michael A. Gayed in 2013, this eye-opening book brings together the most relied upon tools of market analysis.Michael E.S. Gayed clearly explains how this powerful combination of major schools of thought of market analysis can help investors dramatically improve their judgment on likely market performance and spot important trends, thereby making successful investment decisions.Intermarket Analysis and Investing begins with an overview of investment analysis that examines types of risk and portfo­lio structuring. Then it moves on to the three prominent schools of thought in market analysis with discussions Economic analysis, which is primarily concerned with the state of business, and anticipates phases of economic expansion and contraction by focusing on economic indicators2) Fundamental analysis, the most widely followed and prac­ticed form of analysis, it looks at the accounting and financial position of companies in an attempt to evaluate intrinsic worth and true stock value3) Technical analysis or the market-timing school, practiced by "believers in the supremacy of trend analysis," and followers of the ticker tape, It is primarily concerned with the dynamics behind the fluctuation in the price of a stockThis book also examines the positive aspects and pitfalls to contrarian investing, top-down and bottom-up market approaches, comparative market analysis, and common-sense trend analysis.By integrating economic, fundamental, and technical quan­titative analysis into a sensible working framework, Intermarket Analysis and Investing exposes the inherent short-comings of relying too heavily or exclusively on any single approach. Each school of stock market analysis is thoroughly examined so that the reader can understand each approach and how it interacts with the others.Part II stresses the economic by analyzing the most important aspects of the business cycle, the Fed's role in managing the balance of inflation and unemployment, and factors investors should watch to tame market risk and minimize loss during downtrends.It is here that the importance of economic indicators is emphasized, with an in-depth discussion of the 11 leading indicators that monitor the economy and help the investor anticipate long-term business trends, the four coincident indicators that help verify the predictability of the leading indicators, and the lagging indicators that help spot emerging structural trends.Part III discusses the use of fundamental analysis, which compares the growth and finances of different securities and industry groups. It shows how earnings, sales, book value, P/E multiples, leverage, liquidity, and/or profitability of companies are used to reveal the worth of a security as an investment. The commodities market and the effect of globalization of securities markets are also examined.Part IV shows how quantitative market analysis aids active investors in determining the short-or immediate-term di­rection of stocks. Intermarket Analysis and Investing shows how to improve investment decisions by integrating the best features of fundamental analysis and some well-known market timing techniques described and illustrated in this section.The final section of the book provides insightful investment strategies that are based on the intermarket relationships previously discussed. By integrating the methods described in detail in this book, investors stand a much better chance of profiting from market opportunities and of achieving their objectives.

Genres: Finance, Business

518 pages, Kindle Edition

First published October 15, 1990

Reviews

[Kien Nguyen · Rating 5 out of 5]

It's good for me.

If you want to have a big picture in the investment industry, this book is what you are looking for.

[Terry Koressel · Rating 1 out of 5]

I rarely give a book a 1 star rating and still finish the book. I am not sure why I finished this one. It is not that the book was poorly written....it wasn't. However, the book is so basic in its concepts, that any investor with average experience will find his skills and knowledge already well beyond the level of this book. I think Mr. Gayed makes a big mistake by devoting 90% of the book to teaching the introductory principles in each of his three subject areas: economic, fundamental and technical analysis. The book reads exactly like a textbook from an introductory college course on investing. Almost anyone who will take the time to read a book like this will already have more knowledge in all three areas. Instead, the author should have assumed his readers will understand the basics. He could then have spent his time on the integration of the 3 investment analysis tools...this is the premise of the book in the first place. I cannot recommend this book other than to a novice investor.