ADMS 4501 Lecture Notes - Stock Valuation, Economic Indicator, Saving

• School: York University
• Department: Administrative Studies
• Course: ADMS 4501
• Professor: all

Document Summary

Adms 4501 winter 2012 lois king. Lecture 7 chapter 8 economic and industry analysis feb 16. Two general approaches: top-down, three-step approach, bottom-up, stock valuation, stock picking approach. The difference between the two approaches is the perceived importance of economic and industry influence on individual firms and stocks. Both of these approaches can be implemented by either fundamentalists or technicians. Three-step top-down process security markets: first examine the influence of the general economy on all firms and the, then analyze the prospects for various global industries with the best outlooks in this economic environment. Analysis of alternative economies and security markets: objective: decide how to allocate investment funds among, middle layer countries and within countries to bonds, stocks and cash. Analysis of alternative industries: objective: based upon the economic and market analysis, determine which industries will prosper and which industries will suffer on a global basis and within countries, bottom layer.