Using macro-economic indicators for asset allocation

macro indicators: how are they used in asset allocation?

Level - ADVANCE

Understanding macro economic indicators lets investors make informed tactical decisions because different asset classes respond differently to economic situations. Watch this video to understand why knowledge of the links between asset returns and economic indicators allows smart tuning of portfolios.

AUTHOR(S): Deepa Vasudevan

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Macro Indicators: How are they used in asset allocation?

 Understanding macro economic indicators lets investors make informed tactical decisions because different asset classes respond differently to economic situations. Watch this video to understand why knowledge of the links between asset returns and economic indicators allows smart tuning of portfolios.

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    1.Changing asset allocations in response to macro economic indicators is an example of



  • Strategic Allocation
  • Tactical Allocation
  • Dynamic Allocation
  • 2.The asset class that is likely to perform the best during a period of sustained high inflation is



  • Equity
  • Debt
  • Money market
  • 3.During a period of higher economic growth, a sound asset allocation strategy would be to



  • Increase exposure to property
  • Increase exposure to equity and money market funds
  • Increase exposure to debt funds
  • 4.A declining fiscal deficit will have a negative impact on returns from



  • Debt
  • Equity
  • Money market
  • 5.In a low economic growth period, long term debt gives good returns because



  • Investors are not willing to invest in equity
  • Debt is less risky than equity
  • Easy monetary policy pushes up debt prices
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George Matt 2 years ago

Good video. Thanx for uploading. rnrnRegards, rnGeorge Mathews