: The strategy is uniquely flexible, allowing for long and short positions across four primary asset classes: equities (indices), fixed income, currencies, and commodities. Global Macro in Practice: Strategic Implementation
Exploiting relative economic strength between nations. global macro theory and practice pdf
Theory alone does not generate returns. Global macro managers execute their views using distinct strategic frameworks. Discretionary Macro : The strategy is uniquely flexible, allowing for
┌──────────────────────────────┐ │ Macroeconomic Fundamentals │ │ (Growth, Inflation, Policy) │ └──────────────┬───────────────┘ │ ▼ ┌──────────────────────────────┐ │ Capital Flow Drivers │ │ (Interest Rates, Risk Premia)│ └──────────────┬───────────────┘ │ ▼ ┌─────────────────────┴─────────────────────┐ ▼ ▼ ┌────────────────────┐ ┌────────────────────┐ │ Asset Prices │ │ Exchange Rates │ │ (Equities / Bonds) │ │ (Currency Markets) │ └────────────────────┘ └────────────────────┘ The Mundell-Fleming Model Global macro managers execute their views using distinct
Trend-following algorithms that automatically buy commodities during an inflationary spiral. Asset Classes Traded