Another Argument for Technical Anaysis

The Misrepresentation of Earnings, a white paper that uncovers some startling information about earnings manipulation directly from those who would know - CFOs.  From the abstract:

  • "On earnings misrepresentation, CFOs believe that in any given period a remarkable 20% of firms intentionally distort earnings, even though they are adhering to generally accepted accounting principles."

Another article I read today titled Be careful with numbers - Why investors must read between the lines, by Accountability Research Corp., again questions the reliability of reported numbers.


All the more reasons why I'm not dependent on fundamental research.

Graham Hubka