EXPERT ECONOMIC ANALYSIS.
Systematic and well-designed way of determining the maximum use of a scarce resource is what can be called economic analysis, this will have to involve comparing two or more alternative in order to achieve a certain objective obviously under some given constrains and assumptions. It is good to note that economic analysis accounts for the opportunity cost incurred in the resource and attempts to measure it in monetary terms.
An informed decision is always preferred since it does not involve regrets and in case of any challenge or a risk it is planned in advance and always averted, therefore, inexpert economic analysis it is always good to check on some issues before venturing. Among the very first issues to consider is the political economic analysis of the country of choice, a stable and economic friendly environment will always attract many investors, therefore, one can be assured that his investment is not at loss.
It is very important to determine the industry cycle and ensure you understand when they blossom and when they grow dull and they may require regenerating or be phased off. This information will help any investor who wishes to say start a company or even buy an existing one, He will be able to make an informed decision on when to do that though in most cases the appropriate time to purchase is during the early years of the company. Company’s operating ratios and cash flow statement also gives good ideas and also helps one to make informed decisions regarding a certain investment. The financial reports mostly made at the end of the financial year can provide good information regarding how the company has been operating for the last one year, starting with the statement of comprehensive income auditor’s report and even directors report all this should be examined by any interested investor before making that financial decision.
For those who investors who would like to join the stock market , and may be they lack the necessary knowledge to know how things are done here and also how secure their hard earned money is with just a help from a friend or even online help one is good to go. It is very good to do a deep study on how well your broker of choice is well informed about stock market this is because there are many investors who without knowing have ended up suffering at the hands of such brokers yet they claim to know about the stocks but in the real since they don’t. Analyzing ratios of any given company should always be done to ensure that you rely on understanding how the company has been performing.