Macro to Micro ER

I was wondering if anyone could explain how ER analyst approach writing reports that include looking at the economy of countries THAN going down to a sector and THAN companies. I am interested in improving my Macro to Micro knowledge and I would like to get a start ASAP. Hopefully I can get some info from analysts that do this for a living and can possibly break this down to a systematic approach or at least an outline approach that I can fill in as I learn more.

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Comments (7)

Best Response
Aug 27, 2011 - 6:27pm

THAN

This may vary by sector, and definitely varies considerably by analyst. Generally though, ER analysts are being leveraged by the buy side for company specific insight. AM/HF aren't looking to outsource their views on the macro world to sell side ER. They'll handle that internally or use economists/strategists as consultants.

That said, it is helpful in your reports to tie in supporting macro developments, and in certain cases (basic materials comes to mind) macro trends creating supply/demand imbalances may be key to your thesis. More likely than not though, ER reports are bottom up driven.

Sep 1, 2011 - 8:51pm
jbno1qb:
THAN

This may vary by sector, and definitely varies considerably by analyst. Generally though, ER analysts are being leveraged by the buy side for company specific insight. AM/HF aren't looking to outsource their views on the macro world to sell side ER. They'll handle that internally or use economists/strategists as consultants.

That said, it is helpful in your reports to tie in supporting macro developments, and in certain cases (basic materials comes to mind) macro trends creating supply/demand imbalances may be key to your thesis. More likely than not though, ER reports are bottom up driven.

I don't really see how this provides an answer to my question. I know there are people who do ER reports top-down. I don't understand this is a valid question and I am not getting anymore responses.

Sep 1, 2011 - 9:13pm

I think part of them problem is the way its worded. You mean a top down analysis of a specific company, in a sector in a country? Uh, the firm I used to be at would have a company to write a report about. They would do the relevant research which included the economic outlook of the country it was in, the health of that companies sector within that country and then the company itself. How did you think it was done, like a google maps search where it just zoomed in from space?

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Sep 3, 2011 - 12:02am
happypantsmcgee:
I think part of them problem is the way its worded. You mean a top down analysis of a specific company, in a sector in a country? Uh, the firm I used to be at would have a company to write a report about. They would do the relevant research which included the economic outlook of the country it was in, the health of that companies sector within that country and then the company itself. How did you think it was done, like a google maps search where it just zoomed in from space?

I don't understand the question is straight forward. I want to know how people in ER approach researching macro- to micro. My understanding of macro to micro is what I had mention in my OP. you start with a country's economy than work you way down to the health of the markets than to the individual sector/companies.

And the last statement you made makes no sense at all, maybe you were really trying to help in the beginning of your post but at the end you sounded more like a "smart ass/ Ass". just saying.

Sep 21, 2011 - 7:58pm

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