macroeconomic investing

Macroeconomic investing involves making investment decisions based on broad economic trends and factors such as inflation rates, interest rates, unemployment, government policies, and global events. Instead of focusing on individual companies, investors analyze these large-scale indicators to predict how they might influence markets and sectors. The goal is to identify opportunities or risks arising from the overall economy’s direction, such as whether to invest in industries likely to benefit from growth or avoid those that could be adversely affected by economic downturns. This approach helps in constructing diversified portfolios aligned with wider economic conditions.