What type of analysis assesses the economic outlook and industry performance prospects?

Fundamental analysis is the correct answer because it focuses on evaluating the overall health of an economy and specific industries, as well as the financial health of individual companies. This type of analysis considers various economic indicators such as gross domestic product (GDP), unemployment rates, inflation, and interest rates, along with industry trends and competitive environment. By analyzing these factors, investors can gauge the potential future performance of investments.

This analysis is crucial for long-term investment strategies, as it helps investors understand whether a stock or security is under or overvalued based on the economic circumstances and the performance of the industry in which it operates. Through this lens, investors can make informed decisions about where to allocate their resources.

In contrast, technical analysis focuses on price movements and trading volumes to predict future market behavior rather than the underlying economic conditions. Sentiment analysis examines the emotions and attitudes of investors regarding the market which can impact price trends but does not directly assess economic or industry fundamentals. Quantitative analysis employs mathematical models and statistical techniques to analyze data but may not specifically focus on the economic outlook or industry performance.