- Most watched, most emotional and least reflective of economic conditions because they price sentiment of companyâs future earnings into the valuation1
- Fundamental analysis takes a discounted cash flow approach to the valuation of a stock by viewing a stock as a series of future earnings and discounting those by a risk-adjusted rate.
- A relative valuation of a stock is based on the value of other similar stocks on some type of metric for example Price to earnings ratio
- There is the idea of a Central bank put where the Central Bank will backstop equity markets. Currently, the Federal Reserve is not allowed to purchase equities, but there are other ways it may help stock prices.
- Private Equity
- Hedging by options dealers and sudden equity drops
- Passive income in equity markets
1. Wang, J. J. Central Banking 101. (Joseph, 2021).