Investment research involves the use of various sources of information to study a country's economic condition, public companies, commodities or other securities to form opinions on their current and future expected performance.
When researching a public company or a security, a researcher can use fundamental analysis or technical analysis. Fundamental analysis involves studying a company's financial strength, organization and management to formulate an opinion on how they expect a company will perform in the future. Technical analysis involves the study of a security's price movements and trading volumes in an attempt to discover a trend that indicates future performance.
A research analyst is a professional who prepares investigative reports on securities and they may use both fundamental and technical analysis in preparing their research.
Investment research can be found in all countries and it is common that investment banks and research analysts develop and distribute investment research for many global financial markets. Technology has made it easier to gather information and using multiple pieces of research on a target company or security can provide the most detailed and complete analysis.
For years, investment strategies used by investors have focused on local financial markets since this is what we knew and understood but opportunities exist globally. It has become easier to gather information with the growth of the Internet.
Gathering information from different financial markets provides a diverse look at a company. A research analyst in Japan may have a differing opinion on a local company, such as Toshiba, than a research analyst in London.
The most successful investors and risk managers use every tool at their disposal, which includes understanding and using global investment research. They know what they are investing in and why they are investing in it. Good investment research provides answers to questions that you should be asking when deciding upon where to invest.