koolgal
11-23
🌟🌟🌟Top down vs Bottom up Investing - which approach is better?  My answer is why not both?

I use a top down view to determine the current macro  economic factors & determine which sectors to invest in.  Eg: I would lean into defensive sectors if a recession is looming such as consumer staples.

Once I have chosen the sector, I switch to a bottom up approach, to select companies that are most likely to outperform their peers.   Eg: Under consumer staples I would select $Coca-Cola(KO)$ which has a wide brand moat.

By using both Top down and Bottom up approach, I have the best of both worlds.  It is not about perfect predictions but about robust risk management and balanced conviction.

The best approach is ultimately the one that allows me to remain disciplined and rational when volatility is at the highest. 

In adopting a blended approach, I would be to seize opportunities and be a better investor.

@Tiger_comments @TigerStars @Tiger_SG @TigerClub @CaptainTiger

Top-Down vs. Bottom-Up Investing: Which One Suits You?
This week the market delivered a full-blown roller coaster: consecutive selloffs, extreme fear, a sharp rally followed by a crash on Thursday, and a weak open with a shaky rebound on Friday that barely closed in the green. Amid the waves of panic, tech stocks finally showed a bit of stabilization. But the reality is simple: most investors ended this week in the red. Whenever the market enters a violent correction, an old question always comes back: Are you better suited for top-down investing or bottom-up investing?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • icycrystal
    11-26
    icycrystal
    thanks for sharing
    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      Happy Trading πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
    • koolgal:Β 
      Appreciate your support πŸ₯°πŸ₯°πŸ₯°
    • koolgal:Β 
      My pleasure 😍😍😍
  • zuma
    11-23
    zuma
    thx
    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      May you have a winning week ahead πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
    • koolgal:Β 
      Happy Sunday πŸ–οΈπŸ–οΈπŸ–οΈ
    • koolgal:Β 
      Appreciate your support πŸ₯°πŸ₯°πŸ₯°
    • koolgal:Β 
      My pleasure 😍😍😍
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