Poll: Are you a top-down or bottom up investor?

Discussions & news
1

As the title said, do you use a top-down or bottom-up approach for investing?

  • Top-down
  • Bottom-up
0 voters

Top-down investing begins with an analysis of the broader macroeconomic environment and then narrows down towards individual assets or securities.

Bottom-up investing begins with a detailed analysis of individual stocks or securities, assessing their fundamentals, financial performance, and growth potential, and then using this information to make investment decisions.

If you are a top-down investor, what economic indicators do you looked at? For example, interest rates, geopolitical events, inflation, commodities prices etc?

If you are a bottom-up investor, what do you focus on? Growth, debts, return on capital (ROIC), technicals, or ratios like P/E, EV/EBIT etc?

2

Top-down. Factors are proprietary. Do you think a broader range of choices might be more informative: Bottom-up, Top-down, Fundamental, Technical? Some may choose all four.