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 at times relatively hard to measure opportunity cost in monetary terms, but using economic analysis it attempts to determine this after acquiring any scarce resource.
So as not to lose much after acquiring a certain resource there are some factors that one has to consider in order to make sure that the decision that he will take will resonate to the cash he will invest. For a smooth and calm operation f business anywhere around the world there must have a smooth political environment, therefore before one decides the best place to invest he should make sure that there is political stability as this will gear and encourage economic growth hence more investors.
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. Understanding company cycles helps one to understand the correct time to invest in a given industry either during initial stage of incorporation of the business or during the last phases of maturity and later decline. 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. Visiting the broker company of choice is a very wise idea and asking many questions as possible should be encouraged to any investor who wills to invest in this sector, since there are many brokers out there who tend to proof as they know how the business is operated but in the real since they don’t. Finally it is very good to note that it may be wise as an investor not to take any investment without first analyzing the ratios of the said company.