Generally, the financial, investing industry uses two, main types of analysis to generate their investment decisions: fundamenal and technical analysis. However, many financial investing firms might only use fundamental analysis.
At Northwest Growth Advising, we believe in using both fundamental and technical analysis to generate our investment decisions for our clients. The advantage of using both fundamental and technical analysis allows us to invest in appropriate investments for our clients while positioning investments in long- term holding patterns during appropriate U.S. economic cycle(s).
The United States economic cycles we are referring to are: 1. Growth/Expansion, 2. Peak, 3. Recession/Contraction, and 4. Trough/Bottom.
While fundamental analysis helps us to choose appropriate investments based from company, industry, and economic data; technical analysis helps us to enter investments during a long-term appreciating price patterns and reduce investment exposure during long-term over-extended, depreciating price patterns. Technical analysis uses mathmatical formulas to indicate possible trends in past investment activity.
By listening to our clients, we document their investment criteria, and then develop a diversified allocation of investments from the client's goals, risk tolerance, retirement needs,and other criteria for long-term holding strategies.
As a disclaimer, not all investments have a clear trend.