Tuesday, December 18, 2007

Fundamental Analysis -Topic 8 Country/Economy Analysis

In top down approach, in global investing, first countries wherein investments will be made will be determined. Country/economic analysis is used for this purpose.

No doubt to forecast financial variables for discounted cash flow analysis, one has to make analysis of the economy. But that is a long term forecast of the economy. In textbooks when economy analysis is discussed, the focus mainly is on short term conditions that help to take short-term investment decisions.

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