This course provides a framework to formulate global asset allocation and trading strategies through the business cycle. It includes discussion of the main themes forming the background to global markets – ‘exit strategies’ from unconventional monetary policies, the sovereign debt crisis and the threat of higher inflation.
The programme is designed to provide an overview of the macroeconomic drivers of financial asset performance. It sets out the theoretical determinants of pricing in each of the main asset classes – equities, bonds, commodities and foreign exchange – and examines empirical behaviour through the business cycle. This provides an introduction to the main economic themes that move markets – growth, inflation, the balance of payments, monetary and fiscal policy. The course is structured under the overarching theme of formulating Global Tactical Asset Allocation within a portfolio framework.