Timo Schlichting

Fundamental Analysis, Behavioral Finance and Technical Analysis on the Stock Market: Theoretical Concepts and Their Practical Synthesis Capabilities Timo Schlichting

Diploma Thesis from the year 2008 in the subject Business economics - Investment and Finance, grade: 2,0, University of Applied Sciences Essen, language: English, comment: Die Diplomarbeit enthält eine sehr umfangreiche Studie zum Verhalten von Finanzanalysten am deutschen Aktienmarkt. Dabei wurden 12.500 Analysteneinschätzungen für sämtliche DAX-Aktien über einen Zeitraum von 4,5 Jahren untersucht und der von den Analysten berechnete Fair Value des DAX mit dem tatsächlichen Kursverlauf des DAX verglichen. Mit erstaunlichen Ergebnissen! Anschließend wird anhand der Studie aufgezeigt, an welchen Stellen Behavioral Finance und Technische Analyse die Fundamental Analyse unterstützen und verbesseren können. Das Literaturverzeichnis ist riesig: ca. 250 Quellen! , abstract: Historically considered, fundamental and technical analyses have always competed, often leading to advocates that ideologically judge either a fundamental analysis or technical analysis to be the one and only analyzing concept. Behavioral finance is a relatively new scientific approach to explain psychological anomalies on the stock market, but is also more and more often considered to be able to compete with both fundamental and technical analyses. Still, do these analysis concepts really compete in practice or could they actually supplement each other with their respective strengths? Taking the turbulent stock market phases as well as these unanswered questions about fundamental analysis, behavioral finance and the technical analysis into consideration, this thesis ultimately pursues two general objectives: Firstly, fundamental analysis, behavioral finance and technical analysis should be scientifically examined in terms of their premises, analysis approaches, empirical evidences as well as strengths and weaknesses. Secondly, it should be examined as to whether the fundamental analysis, behavioral finance and technical analysis have theoretical and practical synthesis capabilities that could be u