Analysis Foundations: (Technical vs Fundamental)

Welcome back!

We have been gone for quite some time and, life happens. For that, we apologize but we are excited to dig deep and get back on track. We are now entering into the realm of investing on your own terms and it all starts here! Analysis is a skill that is required should you do the heavy lifting of investing yourself, but is also an excellent skill to have if you're going to keep track of markets, companies, and simply keeping up with whoever may be assisting in running your investments.

Thank you for joining us again! Let's get started.

Transcript

Chris Holling: 0:00

This is the truth about investing back to basics podcast. We wamt to help you take control of your personal finance and long term investments, if looking for a way to learn the why and how investing, then you found the right place. Thank you for taking the time to learn how to better yourselves. Welcome back, ladies and gentlemen, to the fourth season of the truth about investing back to basics. My name is Chris Holling. And I'm Sean Cooper. And ultimately, I'm just I'm just gonna be upfront about this, we are re recording this episode. And I would love to blame Sean. And I can't we, we actually, we did record this and we had this ready to go. And then I checked my file, and it made a very aggressive and violent sound with the track that I had recorded, that was ultimately unusable. And so here we are, pretending like it never happened. It's, but you know, why we're here is clearly to demonstrate our acting skills, and nothing else. Right, Sean?

Sean Cooper: 1:28

Maybe your acting? You actually have some I have none.

Chris Holling: 1:35

thank thank God, somebody does, I guess, maybe sorta, kinda, but really welcome back, we appreciate you coming back. And we're excited to go into the fourth season. There, the fourth season is it we're starting to hit this point of where we're starting to go. even deeper down the rabbit hole of the things that we've been doing before. And really, these these concepts that we're getting into, are, are important. And I'll be honest, I think they're they're a little dense, and they're a little complex. And I, I like that. But I would also encourage that you take some time and maybe, maybe get a legal pad and jot some stuff down. Because it's, it's a lot to take on in this realm. I think we're kind of starting to veer, in my opinion, you can tell me what you think. But I think we're starting to veer into the realm of I'm, I'm choosing to take this on on myself, rather than having somebody do a lot of this stuff for me, and making that active decision. These these are the steps now that we're getting into of like, now that I've made that choice to, to take this on, these are the things that are important for you to take it on individually. Whereas, you know, you can send this off to somebody like Sean, which, you know, he'll do a great job. But, you know, when you when you do send it off to somebody, this area isn't as how do I put that as vital of information, as some of the previous seasons have been for just understanding some stuff. But I also think that it's really key and really important to understand these things. So that you're not completely in the woods on on any of this. And when you are able to talk with people about this, you can you can eloquently pay attention, and make sure that everything is is on track, like what do you what do you think about that?

Sean Cooper: 3:30

Yeah, I would tend to agree, I'd say if you're you're planning on doing this yourself, you need to have a very strong understanding of the topics that we're going to be discussing over this season and next season. And if you're planning on hiring it out, then you still should have a base level understanding of these topics, so that you can understand what they're telling you. You can more or less fact check them if you will, you know, if they're telling you one thing and your base level understanding goes, Yeah, that sounds right, or your base level understanding says I don't, know about that. That's, you know, a good level of knowledge to have going into that relationship. So

Chris Holling: 4:15

I think that's super reasonable. In fact, it kind of makes me think of the other day we there's there's a guy that I work with that. There was a story that that came up where he was meeting with his retirement specialist specifically with somebody for the the pension board that him and I are part of,

Sean Cooper: 4:33

Oh, yeah,

Chris Holling: 4:33

excuse me. Well, not not the board. We're not part of the board. But the

Sean Cooper: 4:36

No the pension itself

Chris Holling: 4:37

right. Right. And so some

Sean Cooper: 4:39

participants,

Chris Holling: 4:40

yes, we are participants, but when somebody that was a representative of it, and was one of the ones that was essentially trying to go to bat for us on some of these things. He was asking some pretty in depth questions about how it's working, moving forward, asking a lot of the right questions about the the in depth portions of his retirement as well as other people's. And the, the conversation eventually got to a point where he was asking something that the, the representative said, Oh, you know what I don't know, I'm gonna have to look into some of these things that you're talking about. And then there's a pause. He said, you know, you've, you've really taken the time to, to look into this stuff, I just don't know some of the answers to what you're asking. And there is an equally long or awkward pause. He said, it's your job. What do you mean you didn't look into these things

Sean Cooper: 5:33

good for him.

Chris Holling: 5:35

And so it continued to get awkward. But the point is, is that if you're able to take the time and at least have a basic understanding, then you can kind of keep people in check. And not saying that everybody, by any stretch is trying to pull the wool over your eyes. But sometimes it's, you know, maybe it's just something that they haven't considered. And even if you just have a general understanding there, you can keep things on track. I think that's, that's worth the knowledge to have just as a base understanding. So cool. Great. Well, today, what we're going to talk about to to hit on this moving forward to, you know, legal pad and pen ready. Is, is we're going to talk about technical and fundamental analysis. Right, Sean? Right.

Sean Cooper: 6:25

Correct.

Chris Holling: 6:26

Okay. Cool

Sean Cooper: 6:26

And I'm curious, Chris, because, as you pointed out, we've, we've already gone through this process, but in the past, you always take the time upfront to share with us. Your understanding, of the topics

Chris Holling: 6:41

are you testing me?

Sean Cooper: 6:42

we're covering which, and but it did and last time, it was rather enjoyable for me to listen to. But this time, you've already heard it at least once. So how do you want to go about that

Chris Holling: 6:57

you're seeing if I paid attention,

Sean Cooper: 6:59

I think that's a good way to go about it. Yeah, maybe we should do that.

Chris Holling: 7:04

This, this, this can only go poorly. So Oh, man, of course, I'm so used to being put on the spot. And I'm just okay. All right,

Sean Cooper: 7:16

come on improv.

Chris Holling: 7:19

It's, it's gonna be good for somebody,

Sean Cooper: 7:21

how about you just start with one start with start with fundamental analysis?

Chris Holling: 7:25

So that's what we're starting with, right? Of course,

Sean Cooper: 7:28

unless you want to just compare the two. I mean, I get that too

Chris Holling: 7:31

Okay. I, I've totally thought about how to reiterate this since last time, we spoke two weeks ago, and I've totally not lost sleep since then. And I'm eloquent now. Alright. So a technical analysis would be a factual analysis on not a portfolio, right? Because it might be about something specific, like for instance, a specific stock that you might be evaluating, but not not an overall portfolio, just a specific thing that you are looking at identifying the, the growth and decay of, and being able to establish a formula or apply a formula to see no, oh,

Sean Cooper: 8:30

if we're talking formulas, we're most likely on fundamental analysis,

Chris Holling: 8:33

see, see, that's why I stopped. That's why I stopped, see how I'm gonna see, I'm aware of things. The technical analysis is strictly the numbers of the growth Oh, man, Nope, I'm totally lost.

Sean Cooper: 8:52

Okay, should I jump in at this stage here?

Chris Holling: 8:56

Well, I mean, if you think you can describe it any better than I did?

Sean Cooper: 9:04

If I can't, then we probably should give up on the whole podcast thing.

Chris Holling: 9:09

This, this has been the truth about it investing. Okay, yes. Tell me tell me about technical analysis. And I'm going to maybe cut in while you're describing it as going, Aha.

Sean Cooper: 9:26

Okay, so I'll actually start with fundamental analysis, just because it's the more traditional method. These both fundamental and technical analysis can be used as predominantly. They're predominantly used for individual securities or individual companies and the securities there of whether it's stocks or bonds, technical analysis, I guess, technically both of them could be used for other investments as well. You know, if you're talking about like commodities or something along those lines, just a different way of applying them, especially the technical analysis can be used in that regard and often is. You could also use them to analyze a portfolio. But again, that's kind of a unique application of each of them. So for the most part, we're talking about analyzing individual securities. And we'll talk about more more of that in the future. But for today, we'll just review these two methodologies and how they compare to one another.

Chris Holling: 10:32

So almost like we know what we're going to talk about in the future episode that we've already recorded.

Sean Cooper: 10:37

We do, we've actually taken some time to plan this out. And I ask Chris, the day before, what we're supposed to be talking about, because I don't have it written down anywhere.

Chris Holling: 10:49

And I said, we're gonna do this, again.

Sean Cooper: 10:54

fundamental analysis specifically is the more traditional style of analysis it is looking at predominantly the numbers. So we're looking at the financial statements, the income statement, the balance sheet, and the statement of cash flows. And we're using multiple numbers from different pieces of those three statements, and building out ratios, things like the price to earnings, which would be the price of the stock divided by the earnings per share.

Chris Holling: 11:26

Okay,

Sean Cooper: 11:26

we might do the price to book so again, the price of the company relative did the book value of the or the price per share relative to the book value per share? The cash flow, which there's a number of different ways of doing that, but traditionally, it's going to be the operating cash flow divided by the short term liabilities. So determining how well the company can basically produce income off of their actual operations and how well they can cover their short term liabilities via that income.

Chris Holling: 12:03

And then you're going through these options as like a means for this is what builds your fundamental analysis, or you're saying that you need to know these two, to accomplish it.

Sean Cooper: 12:15

This is just potentially part of fundamental analysis.

Chris Holling: 12:19

Okay. Okay. Fair enough.

Sean Cooper: 12:20

Yeah, this is just all lumped into that big umbrella. And these are just sample ratios that people often use, there are a couple different couple dozen ratios that people potentially use, whether they're focused, their analysis is focused on earnings, or relative value. So you might be comparing multiple companies together. And so you want to see how the companies compare. So you take these ratios and view them in conjunction with one another to see how relatively valued they are. So is this one undervalued relative to this one, or overvalued, or if you're in like mergers and acquisitions, you might be looking at comparable sales or a comparable companies that have sold in the recent past. And so you're looking at those ratios and then using the ratios as a means of adjusting that sales value.

Chris Holling: 13:25

So you're saying like, you'd be looking at whatever company you're interested in, and then one that's comparable, or in the same realm, and you'd compare the two price to earnings on on both of them, you're using the two ratios to compare while you're doing this?

Sean Cooper: 13:38

Exactly, exactly. Yep. Otherwise, you might just have some kind of like threshold that you're looking for. So for example, maybe you're a, you're looking for low p/e ratios, so you're not even gonna bother looking at companies that have a P/E ratio over 20. Or maybe it's even lower, maybe it's 15, which would be really hard to come by right now, in today's market, but since most everything is really high, in terms of P/E, but that's neither here nor there. The point is, you could have a threshold, so you're using it as a cutoff of now these companies are, are the only ones I'm going to look at if they meet these criteria. So you're using it as a screen, basically, and then you might start evaluating the companies from there. So that would be the primary use for the ratios is for comparables or for screening purposes. Another aspect of fundamental analysis, there's a lot of different things that we could, you could potentially do that would fall under fundamental analysis, but one that I tend to prefer would be discounted cash flow. So you would actually be taking these financial statements and projecting them out into the future under different scenarios. So different growth. scenarios or different market scenarios, like if the market were to tank or the market does really well, or supply exceeds demand, or vice versa? How do those impact the company going forward, and then funneling that all down into a cash flow, whether you're analyzing the company's actual cash flow, like what we were talking about before, so operating cash flow, or maybe it's the dividends that they're going to be paying out. So you're looking at the cash flow of the dividends, from an investor standpoint, and then discounting those cash flows in each of the quarters, or each year, back to today's value based on some sort of discount rate. So that would all fall under fundamental analysis.

Chris Holling: 15:49

And so those those are all things that just just to kind of, I guess, put up, put a bow on it. While we're, while we're talking about this a fundamental is going to be much more, we're strictly looking at that factual history. And numbers with the current, say, ratios really is the right word, using the current ratios, and then maybe creating a couple of variables along the way to look at potential changes within ratios in the future. But that's, it all remains very, very factual and putting specific numbers places that it's not it's not a generalization when you're doing these, this fundamental analysis.

Sean Cooper: 16:37

Right, right. Right. And actually, you brought up a good point there, yes, you can put in doing those projections that I talked about, you can actually project forward the so there's the forward p/e ratio is what they refer to it as. So you could project forward these ratios and see what they look like in the future and how reasonable your assumptions are that sort of thing as well. So another thing that I think would probably fall under fundamental would be like multiple regression analysis. I don't think I'm going to take the time to go over that in any great detail. It's

Chris Holling: 17:11

okay. Is there a good? Good source for it? Like, is there a good description on investopedia? for it that we can just say, hey, go check this out. If you're interested in learning more,

Sean Cooper: 17:23

if you want to learn more on multiple regression analysis, an advanced course on Excel would be probably the way to go.

Chris Holling: 17:29

Okay,

Sean Cooper: 17:29

so

Chris Holling: 17:29

cool.

Sean Cooper: 17:30

Yep. And if you're getting into that advanced course, then you can also pick up some info on Monte Carlo simulation and things along those lines, although there are a lot more efficient ways to run Monte Carlo simulations than excel at this point.

Chris Holling: 17:43

Okay, that's fair enough. Yeah.

Sean Cooper: 17:45

So

Chris Holling: 17:46

note worthy

Sean Cooper: 17:46

solver's. Another good one that you can learn in that advanced course as well. So getting back to the some of the more traditional fundamental analyses, though, I would say another aspect is actually digging into the prospectuses of companies. And they're not necessarily the prospectuses, excuse me, but their annual reports. So jumping in, and it This helps a lot when it comes to those projections, basically reading through the annual report to determine what areas is, is the company focusing on what aspects of the economy, you know, different growth, trajections? Are they anticipating? Are they do they have a new product line that's coming out that they're hoping is going to increase sales, and then trying to build those concepts into your projections is very useful. And then also analyzing, okay, what if they

Chris Holling: 18:44

Okay, that's fair enough. get this wrong? What does that do to them? How much money are they investing into this, you know, new endeavor, if that's what they're doing? And what if it doesn't pan out the way they're hoping for? So that would all fall under fundamental analysis too

Sean Cooper: 19:03

Cool. Any questions on? I mean, that was kind of my

Chris Holling: 19:07

No, I think, that was good

Sean Cooper: 19:08

overview of fundamental. So

Chris Holling: 19:10

no, I think that was good. It was good to have like a uh this, here's, here's a version of what you're looking at. Here's the things to consider. It's it's very factual. It's very straightforward. It's compare, compare these ratios. There's lots of ratios to consider. Here are some of them that do get considered. And if you want to learn more on X, Y, and Z, then here are some options. So I think that covers it.

Sean Cooper: 19:33

Cool. Cool.

Chris Holling: 19:35

So then were looking at

Sean Cooper: 19:37

yeah, for comparison purposes, technical analysis is definitely more recent is it's been around for a few decades now for sure. But it's the more recent development and that has to do predominantly with technology, if you will, because technical analysis primarily revolves around Looking at historical prices of a stock of a company shares, and some of the ancillary information that you can garner along with that. So, the technical analysts are often referred to as Chartists because they're they're looking at charts they're looking at charts of a company's stock. And depending on what their trading timeframe is, will often determine what timeframe they're looking at on the charts, whether they're only looking at, you know, a few weeks worth of data, or they're looking at 10-20 years worth of data. Because that, that changes what the chart looks like, to a great extent. And what they're looking for is a number of different things. But oftentimes, they're looking at the trend of the stock, whether it's bullish, bearish or flat, or if it's bouncing back and forth between two prices, or it's just kind of oscillating between a couple. And, you know, stock that looks bearish on a, you know, one month chart may still be very bullish on a 20 year chart. So this timeframe

Chris Holling: 21:19

Where do those terms come from

Sean Cooper: 21:20

bullish and bearish?

Chris Holling: 21:21

Yeah, like

Sean Cooper: 21:22

I don't actually know

Chris Holling: 21:24

horns of the bull. Is it? Or is it like I always picture like a bull that I I know I shouldn't, but I keep picturing like an actual, like grizzly bear. But it's I imagine bearish is more like, naked? Like, like empty? Bear Bear?

Sean Cooper: 21:41

No. Traditionally, they it's a bull and a bear like a grizzly, like what you were talking about when they depict them?

Chris Holling: 21:50

Well, then where do they come from,

Sean Cooper: 21:52

I don't know. That's a great question. You should look it up. I.

Chris Holling: 21:58

Okay. My

Sean Cooper: 21:59

OK

Chris Holling: 22:00

my calling is here.

Sean Cooper: 22:01

That's right.

Chris Holling: 22:02

It's my moment,

Sean Cooper: 22:03

you you look it up. And I'll continue.

Chris Holling: 22:05

Okay.

Sean Cooper: 22:05

Technical Analysis.

Chris Holling: 22:06

Yes, proceed.

Sean Cooper: 22:08

Yeah. So looking for the trend. Most time traders will not go against a trend. There are in fact, trend followers. Managed futures, that's typically what they do is follow trends. Then there's also different patterns that technical analysts will look for, like, specifically reversal patterns or continuation patterns. So your reversal patterns might be something like a double top or a double bottom, in which case you've the double top, it's been going up or double bottom, it's been going down, and then it kind of hits a level comes back up a little bit hits that same level again, and then returns back up and exceeds that that first bounce, then they would expect that to be a reversal. And it's going to go back up from there. The double top is just the opposite of that. And then there's also the head and shoulders. So that would be something similar where like, if a stock was going up, it goes up to a certain level, call it $40 a share. And then it comes back down to like, say 38 bucks a share. And then it goes up to 45, a share and then 38 and then back to 40, which is that initial top that it had earlier. And then it goes back down and it passes that 38 down to like 37, they would consider that a reversal. And it's going to continue on down from there. And then you could have a head and shoulders, you know, upside down head and shoulders, which would really be a reversal to the upside. Some of them,

Chris Holling: 23:35

I do remember, I do remember talking about that. Because I was saying that if you're if you're heading upwards, then then I was upwards and downwards. I was thinking it should be called a head and shoulders. But if you had the trend downwards, and then back upwards, it should be called the knees and toes. And it was totally a missed opportunity by whoever was naming all of that.

Sean Cooper: 23:56

Yes. And then some continuation patterns, most mostly continuation patterns. They could also be reversals as well would be like a pendant or a flag. So with the flag, say for example, the stock has been going up and then it starts to trend sideways. But it is trending sideways in a narrowing pattern. So it's you know, volatile, it's going up and down. But the the gap, the width of that volatility is narrowing. And then if it pops out of that narrowing gap, those that narrowing trend, that would be a continuation to the upside. And then you might have like a pendant where you know it's flat on one side and going that that volatility that's narrowing is going up on one side or down on the other side. That would be your indication that it is going to break out to the side that it is trending to already. And in some instances, the technical analysts will also use the original width of that flag or pendant as their guide of how far it's likely to break out to the upside or the downside. And that's what they're targeting for their initial trade. So as soon as it breaks out, they want to get in, and then they're going to get out once it reaches that initial gap. So if the initial gap was like a $5, spread, which would be rather large, depending on the stock you're referring to, they're targeting a $5 spread once it breaks through. So those would be some continuation and some reversal patterns for atechnical analysts. And that's just looking at the chart the stock price. Some of the ancillary pieces that they might be looking at would be things like MACD, which is moving average convergence divergence,

Chris Holling: 26:01

Sounds like a sweet rapper's name.

Sean Cooper: 26:05

Yeah, or stochastics are looking at under over bought overbought or oversold, moving averages, there are a variety of different moving averages in addition to the MACD. And again, that depends on the timeframe if you're looking at like I got, you can look at moving averages on a minute by minute basis versus weekly or monthly or annually.

Chris Holling: 26:34

So overall, I'm sorry, I cut you off.

Sean Cooper: 26:37

No, you're okay.

Chris Holling: 26:38

So overall, when we're when we're looking at this stuff, and we're considering the technical side, you're you're not just strictly holding on to the numbers and adjusting some ratios here and there, it becomes more of a general view of uptrend downtrend maintaining

Sean Cooper: 26:58

correct

Chris Holling: 26:59

the level and it becomes it sounds like a lot more visual than anything

Sean Cooper: 27:04

very much. So yeah, if I'm a true technical analyst, I care nothing whatsoever about the value of the company.

Chris Holling: 27:12

Gotcha. Okay.

Sean Cooper: 27:15

Yep,

Chris Holling: 27:15

I think I think I identify with the technical guys a little bit more. I'm such a visual person, I remember, remember going over this

Sean Cooper: 27:22

That's fair,

Chris Holling: 27:22

you're like, this looks like a flag. I'm like I can I can picture a flag.

Sean Cooper: 27:26

Right, right.

Chris Holling: 27:28

Okay. Okay, great.

Sean Cooper: 27:32

Another thing that you might look for, as a technical analysis analyst would be volume. So the trick, trading volume in a particular day, so you want to look at the average trading volume of a stock, and see where it's at relative to to that. So if you get a breakout, to the upside, or the downside in one of those patterns that I was referring to, and there's no volume behind it, like the volume is a quarter of what its average would be, that would not be a confidence booster, if you will, that would not be a positive sign that that breakout is going to continue in the way that you expect it to. Whereas if there's a lot of volume behind it, you know, double their average volume, that would be a very confident breakout. So at least that's how they, they would view it.

Chris Holling: 28:19

Okay.

Sean Cooper: 28:20

And they're often combining a variety of these different different factors. So and, and in terms of combining things, you don't necessarily have to be a whole hearted fundamental analysts or a wholehearted technical analysts, you get people that combine the two concepts into one. And most often the way they're doing that, and this isn't how everybody does it. But most often, they would be using the fundamental analyst analysis to determine what to buy. And then they would be utilizing the technical analysis to determine when to buy or sell

Chris Holling: 28:57

Oh Okay. That's a that's, that makes sense.

Sean Cooper: 29:01

So using them in conjunction with each other. I on the other hand, I predominantly rely on fundamental analysis. And then I utilize a variety of different technical analyses to evaluate the overall feeling in the market as a whole. So looking at like the s&p 500, for example, to represent domestic equities, large cap domestic equities, and evaluating how is it overheated? Is it overbought, oversold? Is it trending? So I don't necessarily use it as a buy sell indicator so much as how is the what is the overall market sentiment? And how is that going to impact my underlying holdings?

Chris Holling: 29:55

That makes sense. Well, that makes sense in both the sense of what you're describing as well as of course, you've leaned towards fundamental because you're a numbers nerd.

Sean Cooper: 30:05

Yeah.

Chris Holling: 30:07

Yeah.

Sean Cooper: 30:07

Yeah. I like the discounted cash flow. I like the multiple regression analysis.

Chris Holling: 30:12

Gotcha.

Sean Cooper: 30:13

Yep,

Chris Holling: 30:14

totally makes sense. Okay. Well, I mean, how, how else did is that? Is that kind of a good broad strokes of what we're, what we're looking at?

Sean Cooper: 30:24

Yeah, those are definitely the the broad strokes gives you well. Go ahead.

Chris Holling: 30:31

If the broad strokes are handled, then that means it's my turn to shine. Cool. Because Where did the bulls and the bears come from?

Sean Cooper: 30:44

Tell us Chris

Chris Holling: 30:45

I will. Okay. This actually came from investopedia, which I thought this is gonna be like a wiki thing that I find. But

Sean Cooper: 30:54

No investopedia is always better than Wikipedia when it comes to finance and investing.

Chris Holling: 30:58

Well sure, but you know, we're just talking about bears and bulls. So I just, alright, whatever, it's fine. So and I'll actually I'll just, it's short enough. I'll just read the the excerpt from it. So that it's a it's straight from the horse's mouth about bulls and bears. That's a lot of animals? Oh man

Sean Cooper: 31:18

That is a lot of animals. I want to know why the horse is the one talking about the bulls and the bears,

Chris Holling: 31:23

because it's the from the horses. Shut up, Sean. Okay, so where? Where did bulls and bears come from? While the terms are relatively simple to understand the impact either a bull or bear market can have on your portfolio and wealth is undeniable. Both animals are known for their incredible and unpredictable strength. So the image that evokes in regards to stock market volatility certainly rings true actually. That's really why I started wondering about it, because I was like, well, they're both big and scary. So like, why, you know, it's not like the bear and the salmon market, you know, it's not like it dives down anyway,

Sean Cooper: 32:03

the salmon, I mean, they're very determined swiming upstream. That's

Chris Holling: 32:08

I bet that a salmon is like, like a flag on a technical analysis you like that, you know, it kind of kind of wavers, kind of, kind of, alright, shut up. Okay. So, interestingly enough, the actual origins are unclear, but here are the two most frequent explanations. The terms bear and bull are thought to derive from the way in which each animal attacks its opponents. That is a bull will thrust its horns up into the air while a bear will swipe down.

Sean Cooper: 32:39

Interesting

Chris Holling: 32:40

These actions were then related metaphorically to the movement of a market. If the trend was up, it was considered a bull market trend was down, it's a bear market.

Sean Cooper: 32:48

I like that.

Chris Holling: 32:50

The second explanation is historically, the middlemen in the sale of bear skins, would sell skins they had yet to receive. As such, they would speculate on the future purchase price of the skins from the trappers hoping they would drop, the trappers would profit from the spread, the difference between the cost price and the selling price. These middlemen became known as bears short for bear skin jobbers, and the term stuck for describing a downturn in the market. Conversely, because bears and bulls were widely considered to be opposites due to the once popular Bloodsport of bull and bear fights. The term bull stands as the opposite of bears, which I didn't even know there was such a thing as a bull and a bear fight.

Sean Cooper: 33:35

I didn't either.

Chris Holling: 33:37

So

Sean Cooper: 33:37

I like the first explanation better.

Chris Holling: 33:39

I do. I do too. I think that's a I can, it'll it'll stick with all my visualization.

Sean Cooper: 33:46

Right Right.

Chris Holling: 33:48

So that's cool. Maybe Maybe one of our listeners will know, the actual which one's correct. Or maybe there's another explanation that we that we haven't even heard yet. I think one of those three listeners are in fact just going to give me weird facts about horses and ignore everything I just said,

Sean Cooper: 34:04

right.

Chris Holling: 34:05

That's going of wind up happening. Okay. Well, you know, do you do you feel like we handled this? Wellish do you think we we're hitting it hitting pretty good?

Sean Cooper: 34:16

Yeah, yeah.

Chris Holling: 34:16

What do you think

Sean Cooper: 34:17

I mean, we're just trying to give an overview of the the two two methodologies here, if somebody wants, you know, more insight into you know, how do you actually crunch these numbers for fundamental analysis? What is discounted cash flow? Or, you know, how, what does it look like to do these? What are these chartists actually looking at? You know, we can, we can certainly try to address those in more detail, but that would to do it all in one fell swoop would involve, you know, a six hour podcast and I don't have that kind of energy

Chris Holling: 34:52

No. No. hard No, that I don't have enough booze in my booze drawer.

Sean Cooper: 35:01

That's why if somebody has a particular interest in one aspect of them or multiple, we can break them out into individual podcasts and describe them, break them down in more detail.

Chris Holling: 35:13

Sure, I totally agree with all that I think it was a good little wrap up. And especially because we do make some references as we do for most of these, we usually build on whatever we've started from before. And in a lot of ways, especially per season, we tend to do that.

Sean Cooper: 35:30

Exactly. So come back next week.

Chris Holling: 35:33

Right, come back next week for the the the episode we totally didn't record already.

Sean Cooper: 35:38

Yeah. portfolio analysis, and then we'll cover stock analysis,

Chris Holling: 35:44

security

Sean Cooper: 35:44

In the following

Chris Holling: 35:45

You corrected me on that

Sean Cooper: 35:46

security analysis. I did correct you. It's security analysis, because it's analysis. You can use for any individual security, it just most common amongst stocks. So yes,

Chris Holling: 35:56

good.

Sean Cooper: 35:57

Yes. We did cover a lot of those concepts today. But we'll be going over some other ideas then later as well

Chris Holling: 36:05

Absolutely. So I'm glad we're getting into this I hope. I hope your your mind and legal pad are full. And yeah, let's, let's wrap this up. Thank you again, everybody, for joining us actually on the start of the season four for the truth about investing back to basics. We appreciate you coming out here. My name is Chris Holling.

Sean Cooper: 36:30

And I'm Sean Cooper.

Chris Holling: 36:32

And really thank you for taking the time to want to learn how to better yourself because I think that is a hard quality to find. And we will see you here how how am I still screwing this up?

Sean Cooper: 36:45

You got it for like the entire season three.

Chris Holling: 36:48

you know it was? I got cocky we thank you for joining us. We'll catch you next time. podcast disclaimer disclaimer. The disclaimer following this disclaimer is the disclaimer that is required for this podcast to be up and running and fully functioning and moving forward. This is going to be the same disclaimer that you will hear in each one of our episodes. We hope you enjoy it just as much as we enjoyed making it.

Sean Cooper: 37:24

All content on this podcast and accompanying transcript is for information purposes only. opinions expressed here in by Sean Cooper are solely those of fit financial consulting LLC unless otherwise specifically cited. Chris Holling is not affiliated with fit financial consulting, LLC nor do the views expressed by Chris Holling represent the views of Fit financial consulting LLC. This podcast is intended to be used in its entirety. Any other use beyond its author's intent distribution or copying of the contents of this podcast is strictly prohibited. Nothing in this podcast is intended as legal accounting or tax advice, and is for informational purposes only. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. This podcast may reference links to websites for the convenience of our users. Our firm has no control over the accuracy or content of these other websites. advisory services are offered through Fit financial consulting LLC, an investment advisor firm registered in the states of Washington and Colorado. The presence of this podcast on the internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute, follow up or individualized responses to consumers in a particular state by our firm in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption for information concerning the status or disciplinary history of a broker dealer, investment advisor or their representatives. The consumer should contact their state securities administrator. So if you want to talk about technical analysis, if

Chris Holling: 39:07

that's what I was talking about

Sean Cooper: 39:08

Seemed to be going, yes,

Chris Holling: 39:09

I don't I don't know what you were paying attention to. But I was paying attention to technical analysis.

Sean's Phone: 39:16

Let me out, I'm stuck in your pocket.

Sean Cooper: 39:17

So was my phone.

Chris Holling: 39:21

The things startles me every time. It startles me now. It startles me when I edit. It startles me. Every single time. How do you follow Will Smith in the snow? You follow the fresh prints?

Sean Cooper: 39:44

I like that one

Chris Holling: 39:46

I thought the dryer was shrinking all my clothes. Turns out it was the refrigerator all along.

Sean Cooper: 39:55

Indeed,

Chris Holling: 39:56

What do you what do you call a fish wearing a bow tie sofishticated. No,

Sean Cooper: 40:08

no.

Chris Holling: 40:11

You know what you can say this but you have to say it in like the proper voice. It's a I'm afraid for the calendar. It's days are numbered. I once had a dream I was floating in an ocean of orange soda. It was more of a fantasy I used. I used to play piano by ear, but now I use my hands

Sean Cooper: 40:39

wise choice