Fundamental Analysis in Action: Examples Every Trader Should Know 

What if you could spot the next market shift before it happens?  

Fundamental analysis is designed to give traders that advantage. It helps you cut through the noise and focus on the true drivers behind price movements. 

In this article, we’ll explore real-world case studies that show exactly how powerful this approach can be.  

From the 2008 financial meltdown to the rise of AMD in 2024, these examples reveal how traders can use fundamental analysis to seize opportunities when the market sends it signals. 

Case Study 1: 2008 Financial Crisis 

The 2008 financial crisis was one of the most significant economic disasters since the Great Depression, triggered primarily by the collapse of the US housing market. 

At the heart of the crisis was an unsustainable rise in housing prices, which had grown significantly above long-term historical norms. For instance, the price-to-income ratio had climbed well beyond its typical range, pointing to an overheated market. Additionally, the US mortgage debt-to-GDP ratio had reached record levels, highlighting how heavily indebted the economy had become. 

As these red flags became more apparent, fundamental analysis could have pointed to an impending correction. When the US government stepped in to take control of Fannie Mae and Freddie Mac, two of the largest mortgage companies, it signaled deeper trouble. Shortly after, Lehman Brothers filed for bankruptcy, marking one of the most devastating collapses in US history. 

Over the course of the downturn, the Dow Jones fell by more than 7,000 points from its 2007 peak to its 2009 low, as global markets absorbed the full impact of the crisis. This case highlights how fundamental indicators, such as the housing market’s overvaluation, could have served as early warning signs of the meltdown. 

DJIA price drop during the 2008-09 financial crisis / Source: TradingView 

Case Study 2: AMD Q2 2024 Analysis 

In Q2 2024, Advanced Micro Devices (AMD) posted impressive financial results that set the tone for a strong upward trend in its share price over the months that followed. Revenue reached $5.84 billion, beating market expectations. 

This positive performance was driven largely by rising demand for AMD’s data-centre products and AI-focused semiconductor chips, which strengthened investor confidence in the company’s long-term growth trajectory. 

Beyond earnings, several key fundamental factors continued to support bullish momentum. AMD hosted its widely anticipated “Advancing AI” event, where it unveiled new product updates and reinforced its commitment to AI innovation, an important catalyst that sustained market optimism.  

The company also expanded its strategic presence in India, progressing on manufacturing and development initiatives that signalled long-term global growth potential. 

Together, these earnings results, product catalysts and strategic expansion efforts contributed to AMD’s 42% stock price increase, with shares trading in the $130–$170 range in the weeks that followed. 

This example illustrates how combining financial performance, industry catalysts and global expansion can help traders identify strong fundamental opportunities in the market. 

Advanced Micro Devices (AMD) Price Surge After Aarnings / Source: TradingView 

Case Study 3: October CPI 2022 

In 2022, global markets were rattled by aggressive interest rate hikes aimed at combating high inflation.  

For months, inflation had been running hot, forcing central banks to take drastic measures.  

However, when the US October CPI report was released, it showed that inflation had finally peaked and started to cool off. 

This unexpected shift had a major impact on the markets. Stocks, which had been struggling, rebounded sharply, while the US dollar weakened significantly. 

DXY (Dollar Index) Performance Shift After October CPI / Source: TradingView 

The report signaled to traders that the era of aggressive rate hikes might be coming to an end, sparking speculation that rate cuts could be on the horizon for 2023. 

By September 2023, inflation had slowed down, and rate hikes came to a halt.  

This CPI report served as a key turning point for the market, showing how important economic data can influence sentiment and drive major price movements.