top-down investing

(redirected from Top-Down Approach to Investing)

Top-Down Investing

An investment philosophy that considers macroeconomic factors. When making investment decisions a top-down investor first considers the broad condition of the economy, then factors affecting specific industries expected to outperform the economy, and, finally, individual companies expected to do the best in those industries. Proponents of top-down investing argue that it identifies good companies more efficiently, while critics contend that it does not let the investor know the details of each specific stock. See also: Bottom-up investing.

top-down investing

Making investment decisions by first focusing on economic forecasts and then evaluating prospects for individual industries and companies. Compare bottom-up investing.
References in periodicals archive ?
Khayat adopts a top-down approach to investing, concentrating first on identifying the right sectors and themes in the light of the prevailing economic and financial backdrop.
The fund will take a top-down approach to investing, making use of Scudder's extensive fundamental and field research performed by over 30 country and global industry analysts.