Investor Choices

Economic Analysis Economic Analysis is the primary term or factor which is used before any kind of investment. It stands first in top-down approach i.e EIC (Economy | Industry | Company ) So it should not be ignored as it plays a vital role to impact the stocks and their performance. There are few indicators which tell us about the economic condition, what is going into the economy and how they impact the business. These indicators can be found easily on google on different websites. One and popular website for these information is Trading Economics. Caution: The accompanying chart merely serves as a handy guide  and should not be construed as an accurate predictor in all cases. Many times the  anticipation of good or bad news is built into the market and when the news comes  out, the reverse move happens. Investor Choices

Basics of Top-Down Approach (EIC Analysis) Basics of EIC Analysis which will be helpful for a common man to understand. How to design a portfolio. An optimum portfolio is that which grows faster than the economy when the economy expands and falls less as compared to the economy when the economy contracts. 1) Economics Analysis: Basically economic work in the cycle. Which has two phase expansion and contraction we can simply identify the phase by observing our surroundings. Let's say, if we hear GDP is growing, more employment opportunities are being created, Infrastructure improving, MNCs are investing etc.  these are the examples of expansion economy and contraction is vice versa. 2) Industry Analysis: After analysing the economy we need to pick those industries which perform as per the economy cycle. Industries are classified as per their nature how they  perform as per the phase of economic cycle. 3) Company analysis: It is much easier to identify a...