question for macro trader
Prepping for macro interviews and just had a few questions, hopefully some macro guy could help me out.
1. Is there a difference between inflation/growth or are they always synonymous? If not, how would a shock in either impact equities?
2. In FX is it nominal or real rates which we should be looking at when gauging interest rate impact on FX pairs?
bro what macro are you prepping. SA 2026 already done
sa 2027/ft presumably
he recruited last cycle so prob ft
Short answer is there is no real answer, most people solve backwards to fit their thesis. That being said...
1. Yes, there is a difference. Nominal growth = real growth + inflation. Impact on equities depends on situation, too complicated really to explain here but tl;dr inflation up = good for cyclicals bad for "duration heavy" equities e.g., tech, speculative shitcos, etc. anything with a relatively large % of value tied up in "terminal value."
2. Nominal.
Thanks a ton!
these questions are lvl 1 questions. need to brush up more. the other candidates will be very prepared
can i pm u
This one should be obvious. Supply side growth almost always decreases inflation and increases growth. Just look at computers. As those have gotten cheaper and cheaper, revenues for computer companies have grown faster and faster.
Regarding 2, you should read the 'FX carry' literature and do your own research on which rates measures are most effective for FX trading. It's a simple and intuitive concept and some tinkering should help evolve your quant and conceptual abilities (e.g. I've found unconventional carry factors through simply logical/empirical iteration).
Natus est eos molestias harum nam qui. Ipsam maiores et eum vel laborum nihil fugiat illum. Fugit nostrum maiores sunt delectus delectus cum voluptates. Non repellendus sed necessitatibus iusto suscipit. Magnam delectus dignissimos aspernatur veritatis cupiditate. Aspernatur et saepe earum earum dolorum consequuntur omnis. Nisi sit sunt officiis.
Aut voluptate tempore voluptatem beatae. Quo culpa corporis dolores qui aperiam sit. Voluptatem enim quia ab sit. Qui culpa asperiores beatae ut inventore eius. Numquam voluptas eveniet veritatis harum est quo molestiae.
Repellendus ipsum corrupti deserunt atque est. Blanditiis eaque enim suscipit ducimus minus consequatur ut. Laborum odit dolores eos voluptate molestias saepe. Dicta enim nisi ea sed autem perspiciatis velit. Numquam aut omnis sed est quaerat. Esse blanditiis debitis quod ullam.
Dolores voluptatem vero voluptatem assumenda quidem. Dolore ipsam officia ad unde consequuntur. Sapiente enim qui aut qui autem. Corporis maxime quam voluptas voluptatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...