Chapter 1: Economic Analysis and Setting Capital Market Expectations

In this section

• Approaches to Macroeconomic Forecasting
  Approaches to Macroeconomic Forecasting (CFA Level 1): Role of Macroeconomic Forecasting in Capital Market, Key Approaches to Macroeconomic Forecasting, and Econometric Models. Key definitions, formulas, and exam tips.
• Top-Down versus Bottom-Up Analysis
  Top-Down versus Bottom-Up Analysis (CFA Level 1): Macro Approach: Top-Down Analysis, Advantages of Top-Down Analysis, and Disadvantages of Top-Down Analysis. Key definitions, formulas, and exam tips.
• Leading Economic Indicators and Data Sources
  Leading Economic Indicators and Data Sources (CFA Level 1): Key Leading Indicators, Data Sources, and Government Agencies. Key definitions, formulas, and exam tips.
• Scenario Analysis and Sensitivity Analysis in Economic Forecasting
  Scenario Analysis and Sensitivity Analysis in Economic Forecasting (CFA Level 1): Defining Scenario Analysis, Why Scenario Analysis Matters, and Designing Effective Scenarios. Key definitions, formulas, and exam tips.
• Integrating Economic Analysis with Investment Strategy
  Integrating Economic Analysis with Investment Strategy (CFA Level 1): Role of Macroeconomic Insights, Strategic Asset Allocation, and Tactical Asset Allocation. Key definitions, formulas, and exam tips.
• Cyclical Analysis for Asset Return Forecasting
  Cyclical Analysis for Asset Return Forecasting (CFA Level 1): Understanding the Business Cycle, Mapping the Business Cycle to Asset Classes, and Equities. Key definitions, formulas, and exam tips.
• Using Big Data and Machine Learning in Economic Forecasting
  Using Big Data and Machine Learning in Economic Forecasting (CFA Level 1): Big Data: The New Frontier, Defining Big Data, and Real-Time Payments and Credit Card Data. Key definitions, formulas, and exam tips.
• Model Uncertainty and Forecast Accuracy
  Model Uncertainty and Forecast Accuracy (CFA Level 1): Concept of Model Risk, Uncertainty in Economic Relationships, and Sources of Forecast Errors. Key definitions, formulas, and exam tips.