Top-Down Investing
Top-Down Investing is an investment strategy that implies insight in the global financial world as the first step in determining in which stocks to invest. By going deeper in researches, investor will narrow every investigated segment of the market until he finds the best possible stock to invest in. Because of the approach, the strategy got its name Top-Down Investing.
In the first phase, investor will look at the world market as a global investing entity, it is said to look at the whole picture. By narrowing opportunities, he will look at best performing industrial sectors, or at those that could outperform other sectors. When he finds the best possible sector to invest in, the next step is to find the most perspective companies. The final step is to analyze specific stocks within selected companies and to choose the one, or more, with most perspective returns.
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