top-down investing

Top-Down Investing

An investment approach where an investor looks at a country's economy before considering an industry to invest in. Next, they determine what industries or sectors will return well because of the economic conditions and, finally, they then buy stocks that are attractive within that industry.

Notes:

Top-down investing is a useful approach in determining which sectors are hot. This is the opposite of "bottom-up investing".

See also: Bottom-Up Investing, Economy

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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.