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| Human emotion analysis challenges
the conventional methods of fundamental
analysis and technical analysis, allowing us
to explore a third dimension of stock market
behavior ... |
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 "I can
calculate the motions of heavenly bodies, but not the madness of
people," Sir Isaac Newton wrote in
1721, ten years after his failed investment in the well
documented South
Sea bubble. The bubble
taught a lesson that, nearly three centuries later, many otherwise
intelligent individuals have yet to absorb: Financial markets are neither
rational nor efficient, and any investment strategy that ignores that
fact is doomed to failure. Share prices move up and down according to a
bewildering array of factors, only some of which are readily
quantifiable based on fundamentals. A company's market share, revenue and balance sheet all
are key elements. But at least equally important are the vagaries of
crowd psychology and behavior.
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A stock's daily price movement is primarily
driven by human emotion. After all market information is known,
the fundamental of a company does not change even when its stock price is
fluctuating. However, over a
longer time period, a company's fundamental does change. Again, human
emotion is driving the stock price trend up or down. By properly
capturing and measuring variations in crowd emotion, primary trend reversals can often be identified in its
initial stage.
Since 1996, projects at the Huemo Institute for Systematic Investing
Research (ISIR) have been focused on statistical data processing of human emotion,
leading to the discovery of Huemo.
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 Following
trend is the key to successful investing.
During 2000 - 2002, most investors suffered
detrimental losses due to poor understanding
of a disaster downtrend. The research of Huemo
presents clear understanding of such
occurrences. Human emotion analysis challenges
the conventional methods of fundamental
analysis and technical analysis, allowing us
to explore a third dimension of stock market
behavior. |
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For any widely
followed stock, Huemo
is perhaps the easiest yet most powerful tool in predicting primary trend that typically lasts more than one
year. Please contact info@isir.org
for further information.
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| You can do much
better by understanding why there are a few stocks hurting your
portfolio performance. Please send your most
troublesome stock to info@isir.org.
We will analyze it and send you a Huemo
Diagnostics Report.
Telephone: (310) 528-5511
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