Economics and Investment Management

The use of economic analysis is increasing in the investment field, with the major problem the linking of economics and the investment decision. The various functions of the economist are discussed, including providing a business format, following money market trends and reporting on international developments. The economist’s most valuable contribution is focusing and interpreting economic information on the outlook for corporate profits. A logical path is suggested moving from the economy to profits and their valuation in the market, in order to assist investment policy formulation and security analysis and selection.