The Top-Down Approach: A Methodical Way to Build a Winning Stock Portfolio"
If you're interested in investing, you've probably heard of the top-down approach of investment. This is a popular investment strategy that involves analyzing the overall economic environment and then analysing specific sector and then picking individual stocks based on the analysis. Here's how it works: The top-down approach is an investment strategy that involves analyzing the bigger economic and market trends before selecting individual investments. This approach involves three main steps: Firstly, investors analyze the broader economic environment, including factors such as GDP growth, inflation, interest rates, and government policies. They then identify which sectors and industries are likely to benefit from these trends. Next, investors select the most promising sectors and industries based on their analysis. For example, if interest rates are expected to rise, financial companies may be a good investment because they tend to benefit from higher rates. La...