Report Date: 07/23/2010
Copyright © 2007-2010 c4cast.com, Inc.
All rights reserved.
Report Date: 07/23/2010
Copyright © 2007-2010 c4cast.com, Inc.
All rights reserved.
EconomicInvestor database updated: 07/23/2010
Data is updated at the end of each business week.
About Us » What Eta Analysis Is Not
Eta Analysis can help you improve your investment strategy, but it should not be your sole source of information about your assets.
Eta Analysis does not replace traditional fundamental analysis - it adds to it. Fundamental analysis, such as forecasting earnings or screening on company and industry financial data, is still an important part of investment. But by adding Eta Analysis to your list of tools, you can dramatically improve and enhance the investment process.
It is also important to note that Eta Analysis is not technical analysis, which only takes into account the price and returns history of an asset. We apply our well-tested macroeconomic model to the assets in our database, and produce macro-quantitative analysis. This view of asset value is far more robust than technical analysis. Eta Analysis doesn't merely concentrate on past variations in an asset's price; its foci are the economic forces that impact an investment's value.
Eta Analysis does not always yield better performance, higher profits, and lower risk. Any given month's Eta Profiles are empirically based on the relation that each particular firm had to the Eta Factors during the intermediate-term past period. The Eta Profiles do not include traditional "firm-specific" information. For example, significant amounts of new firm-specific information, the presence of overall market fads or bubbles, and significant changes in a firm's position in its marketplace or the overall economy may all cause the Eta Measures to be inaccurate or misleading. (Consequently, based on its Eta Measures, Enron would have been reported as a relatively safe investment with respect to overall economic risk.)