A limitation of fundamental analysis is that forecasting using fundamentals can suggest the market is overvalued but does not forecast the timing of the downturn.

Name: A limitation of fundamental analysis is that forecasting using fundamentals can suggest the market is overvalued but does not forecast the timing of the downturn.
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Question

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A drawback of fundamental analysis is calculating performance ratios with historical data. It is possible that future performance will be different.

A Limitation of Fundamental Analysis Is That Forecasting Using Fundamentals