Question

in investment, the analysis for the global market, domestic market, and industries are necessary for top-down investors. What would be good indicators for the investor to understand current global economic standing? Note that provided at least three indicators.

Answer 1

Top down investors are always looking for analysis into the macro events of the economy for investment rather than looking at the micro factors related to a particular company so they will always look for a bigger picture to invest rather than confining themselves to form specific factors.

Three indicators related to investors to understand current Global economic standing are-

A. Interest rate all across different countries- interest rates will be providing an idea about the the reaction of Central banks in response to the current economic scenario which is prevailing all across the globe.

B. Global growth rate indicator- Global growth rate indicator will be providing an estimate about the growth rate in different economy and it will be providing a broad map of development of the economy and in the long run,so it will be providing for a basis of long term investment

C. Inflation projections- inflation projector is an indicator about the change of inflation in different countries all across the globe and they will be providing and estimation about the the change in the prices of the various goods and commodity and it will also provide an estimation about the demand structure in various economies so it will be working as a basis for making decisions in top down investing.