Fundamental and technical analysis using in order to form investment portfolio

Abstract

Two main methods of stock analysis – fundamental and technical analysis are presented in the article. Based on literature review, the main advantages and disadvantages of these methods and their usage opportunities are distinguished. A European stock market survey is conducted by analysis of market capitalization, closing prices, index returns, risk and coefficient of variation, and identifies the most promising (German) market. Based on the fundamental analysis, a German market survey is carried out. German stock market macroeconomic indicators are analyzed, branch analysis is carried out, and analysis of the most promising branches (automotive and equipment manufacturing) companies. All the results are ranked among the most attractive for investment portfolio formation.