Question

What would be the macro environment factors with the company Lift?

Answer 1

There are many factors outside the specific performance of a given company.

• That affects its fundamental outlook.

Economic factors:-

• Describe the effect that a bull market has on the majority of stocks.
• When companies and the public perceive the Economy to be strong.
• There are much more comfortable spending money.
• Companies adjust ramping up production.
• To meet the increased demand.
• Companies often find that they have over estimated their production needs
• And find they must cut back sharply as the Economy slows.
• This serves further act as a brake on over all Economic growth.

Interest rate funds:-

• Lower interest rates allow companies to borrow money to expand their business more cheaply.
• Or to refinance their current debts at lower rates.
• Any business that relies on a customer's ability to borrow money to do sales can be positively or negatively impacted by changes in rate of interest.

Inflation trends:-

• Refers to the tendency of the price of goods and services to rise over time.
• A predictable decrease in purchasing power encourages businesses and consumers to spend money rather than to save it.
• Strongly rising or high inflation results in sharp price increases for goods and services.
• On the other hand of the spectrum we have deflation.
• Which refers to over all declining trend in the prices of goods and services.
• With the deflation, businesses and consumers no longer have an incentive to spend cash.
• Deflation can ultimately have negative Economic impact than high inflation.
• As deflation progresses , companies receive less for their products and in turn begin to produce less.
• This decline in production cause companies to cut their work force.
• In other words people have the income to buy products and services.
• Which leads to production costs.

GDP and broad Economic growth,:-

• Represents total value of goods produced and services provided in a country.
• In the US GDP is reported on a quarterly basis by the US.
• The official GDP number for the Fourth quarters of a given year was released in March of the following year.
• The percent change in GDP Can fluctuate widely from quarter to quarter
• Sustainable growth in GDP signals a favourable environment for businesses.
• GDP can signal an unfavourable environment.

US corporate earnings:-

The US corporate profits presents a clear picture of over all business prosperity.

Many traders pay close attention to forcasted trends for future earnings.

Many brokerage firms and ratings Services offer earnings for Individual companies Industries as well as a stock market aggregate.