Visitor: Technical analysis is certainly helpful, but it takes fundamentals to convince me.
RouteMaster: Sorry, if we failed to make that clear. In fact most of the charts in RouteMap are about fundamentals - mainly valuation and economics. In terms of investment philosophy, some are value-based, others are momentum-driven.
We will start with value considerations. Have a look at the Balance of Payments, We think this is a lagging indicator whose predictive value is limited to what-if scenarios, but we include it because it is the most widely quoted variable. Here is the past record for Demoland. As a subscriber you could see the same chart for all the currencies in our database and that is true for every type of chart in our system. Notice that here forecasts replaces the Buy/Sell signals.
This chart suggests that the deficits will remain at high levels, so suggesting a high degree of risk, which the market now seems to be discounting.
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