Shares are one of the four main investment types, along with cash, bonds and property. They carry risk, but they can offer the highest returns.The fundamental valuation is the valuation that people use to justify stock prices. The most common example of this type of valuation methodology is P/E ratio, which stands for Price to Earnings Ratio. This form of valuation is based on historic ratios and other statistics are fundamental key to understanding the factors driving long-term stock prices.
The other way stocks are valued is based on supply and demand. In general, the more people that want to buy the stock, the higher its price will be. And conversely, the more people that want to sell the stock, the lower the price will be. This form of valuation is very hard to understand or predict, and it often drives the short-term stock market trends.There are many different ways to value stocks.
Our strategy to buy undervalued fundamentally strong companies which have high growth potential. However, our strategy will also focus on monetary situation of overall financial system , which in our case, will drive the share price.