How Do You Analyze Key Industry Trends & External Trends?
There are two major schools of thought regarding investment analysis: technical and fundamental. Technical analysis looks at historical trends in price and volume charts to find clues about the direction of the market in the future. Fundamental analysis looks at the value-based trends in the market and industry in which a company operates. No matter what company you’re investing in or considering investing in, analyzing key industry trends and external statistics can give you an edge over other investors. One of the most popular frameworks for analyzing key industry trends and external trends is the SWOT Analysis. Review the components of a company’s SWOT (Strengths, Weaknesses, Opportunities and Threats). Determine the strengths. Strengths are considered from an internal perspective. Analyze the strengths of the company (or product) in reference to the entire industry. Look to match up company strengths with industry trends. An example is a sole-sourced contract or a hot new product i
