Saturday, December 25, 2010

Top Down

Investment managers who take a "top down" approach will first of all base their analysis on research and views on the economic outlook and market conditions. They may assess which sectors are best positioned to take advantage of certain economic trends, or the path of the economic/market cycle, and then make their decisions accordingly. Their first focus is high level macro trends, only then do they dive into detailed stock analysis. The contrasting approach is "bottom up" investment strategies.

Synonyms: Economic Analysis, Sector rotation, Market analysis, Macro
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