Financial Education

A Top-Down approach to investing describes investors who base their research on macroeconomic factors or investment themes more than on the fundamentals of a particular company. A top down investor might start with themes affecting the global economy, then anticipate how those themes might affect various economic sectors and industries. After taking into account currency issues, the investor would finally pick individual stocks in the industries and sectors most likely to benefit.

For more information, see all articles on: Active Management, Investing in Stocks, Portfolio Management

See also:

Cash Flows from Investing Activities

Interest and Dividends: Differences Between US GAAP and International Accounting Standards

Passive Equity Investing

Cash Flow From Investing Activities

Bottom Up Investing