Investment Strategies

There are 2 ways you can look at investment
1. Big picture perspective: This is where you look at the macro-economic setting, the state of global capital markets and develop a micro-economic framework that reconciles with your global perspective. This is otherwise referred to as a top-down analysis.
2. Specific investment focus: This is where you reflect more on the merits of a range of particular investments, and allocate your funds accordingly. This is referred to as a bottoms-up approach to stock picking.
3. Holistic or synchronised perspective: The best approach is to consider both, or to integrate both approaches.

Prior to 2002 I really did not have the understanding of global financial markets to understand how all the elements of the market came together. I think it took me about 4 years of reading material to really develop an understanding of the macro-economics that drive markets. In recent years its become apparent to me that so many financial journalists, even economists just dont have a clue.

I would suggest that you really need to know the commercial parameters that drive corporate decision making, and well as the factors that drive markets. It might take you a while, but managing your investments by the age of 40yo is likely to become just as important as managing your career, and managing it well could make the world of difference.
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Andrew Sheldon www.sheldonthinks.com