The short answer? yes, and no…..see below:
Eventually market prices do sync with fundamental data (company finances for stocks, economic data for commodities), but the challenge is that most traders are not capitalized large enough so that they can last long enough until everything is in sync (i.e. anyone seen the Big Short?).
The Crude oil futures example shown in this video shows how dangerous and poorly positioned you can be if you put too much weight on fundamentals.
From our perspective, if you are going to speculate in markets, you do better to read the auction as it is. The profile and the market generated information it displays provides all the data you need to discern trading opportunities.
I made the turn several years ago and stopped looking at fundamental data. Guess what happened? My trading instantly improved. I spent less time each night doing fundamental research and I didn’t get as emotionally invested in positions. I was freed to simply trade the market in front of me, not the one I believed I should have and never got.
Food for thought. Are you still wrapped up in the fundamental game?
Notice: derivatives trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results