Applied Financial Macroeconomics and Investment Strategy: A Practitioner’s Guide to Tactical Asset Allocation

Understanding our interconnected macroeconomic world is important for money managers and investment professionals alike. Here author Robert McGee brings together insights from finance and macroeconomics that are useful for investment strategists concerned with asset allocation decision-making.

McGee provides a thorough look at each stage of the business cycle and analyses their investment implications using real-world examples linking economic dynamics to investment results. The author covers topics such as, the absolute and relative performance of various asset classes as they systematically relate to macroeconomic trends, both cyclical and secular including inflation, interest rates, real GDP, and income growth. The business cycle includes a monetary policy cycle, a profits cycle, credit cycles, inventory cycles and durable goods cycles. Other major trend drivers are also discussed, such as technological change and globalization. McGee uses case studies to better illustrate the various concepts and principles laid out throughout the book.

Focusing on the intersection of macroeconomics and investment strategy, this book gives investment managers an economic framework to improve their understanding and performance in this ever changing global economy.

Table of Contents

Chapter 1 Cycles and Trends: History Does Not Repeat Itself, but It Does Rhyme
Chapter 2 The Business Cycle
Chapter 3 Monetary Policy
Chapter 4 Bonds and Credit
Chapter 5 Equities and Profits
Chapter 6 Commodities and Tangible Assets
Chapter 7 Investing for Long-Term Change: Challenging the Conventional Wisdom
Chapter 8 Lessons Learned from the Financial Crisis