At this stage, the key questions are these: Which method should lead and be used first—technicals or fundamentals, and why? In other words, at the bottom or top, are you more likely to follow a fundamental outlook or a technical outlook? At the bottom or top, investors are still cautious and are skeptical of the market rally that is common in the beginning stages of a bull market. Technicians call this “climbing a Wall of Worry,” which is bullish for rising stock prices.

Does it take time to change opinions on a fundamental basis? Would fundamentalists gradually see the glass as half full the higher the market rose? James Montier, author and global equity strategist (previously at Dresdner Kleinwort Wasserstein ...

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