Macroeconomics

Based on the most helpful WSO content, here are some steps to build a solid foundation in markets and macroeconomics:

1. Foundational Reading:

   • Macroeconomics for Professionals: Start with this book to build a strong foundation in macroeconomics.
   • Economic Indicators: Read books on economic indicators to understand the data the market pays attention to and the nuances involved.
   • Central Banking 101: Skim through this and other books about central banking and monetary policy.

2. Practical Resources:

   • Piper Sandler's "Interns Guide To Macro": This guide provides an overview of the business and liquidity cycle and their impact on asset classes. You can find it https://www.dropbox.com/s/vx7ukzvk0r666ud/JPM%20FX%20guide.pdf?dl=0</a">here.
   • Variant Perceptions Blog and YouTube Channel: These resources offer insights into the thought processes of top-down investors and their approach to the business and liquidity cycle.

3. Books on Specific Markets:

   • Interest Rate Markets by Siddhartha Jha
   • STIR Futures: Trading Euribor and Eurodollar Futures by Stephen Aikin
   • Foreign Exchange: Practical Asset Pricing and Macroeconomic Theory

4. Understanding Market Drivers:

   • It's crucial to understand the drivers of FX and rates markets. This involves not just the tradecraft and jargon but also the underlying factors that influence these markets.

5. Building Models:

   • Develop Excel models for different types of products to deepen your understanding.

6. Macro Strategies:

   • Learn about the pillars of macro strategies: carry, relative value, basis, trend following/momentum, policy, and "bread & butter" trades. Understand how to express these strategies in rates and FX or their derivatives.

7. Networking and Practice:

   • Reach out to macro professionals and engage in conversations to gain practical insights.
   • Start coming up with trade ideas and seek feedback from PMs and sell-side desk heads.

8. Continuous Learning:

   • Stay updated with current events and market trends. Read extensively and try to piece together information like a big puzzle.
   • Understand the broader connections and be able to articulate your position on market movements and economic conditions.

By following these steps, you can build a comprehensive understanding of markets and macroeconomics, which will be crucial for your trading endeavors.

Sources: https://www.wallstreetoasis.com/forum/hedge-fund/developing-macro-understanding?customgpt=1, 1st Year Macro HF Analyst: My Macro Framework, how do i "know the markets"?, Macro: Rates and FX, 1st Year Macro HF Analyst: My Macro Framework