Applied Financial Macroeconomics and Investment Strategy A Practitioner's Guide to Tactical Asset Allocation

by McGee, Robert T.

• ISBN13: 9781137428394
• ISBN10: 1137428392
• Format: Hardcover
• Copyright: 2015-04-28
• Publisher: Palgrave Macmillan

Summary

Understanding our interconnected macroeconomic world is important for money managers and investment professionals alike. Here author Robert McGee brings together insights from finance and macroeconomics that are useful for investment strategists concerned with asset allocation decision-making.

McGee provides a thorough look at each stage of the business cycle and analyses their investment implications using real-world examples linking economic dynamics to investment results. The author covers topics such as, the absolute and relative performance of various asset classes as they systematically relate to macroeconomic trends, both cyclical and secular including inflation, interest rates, real GDP, and income growth. The business cycle includes a monetary policy cycle, a profits cycle, credit cycles, inventory cycles and durable goods cycles. Other major trend drivers are also discussed, such as technological change and globalization. McGee uses case studies to better illustrate the various concepts and principles laid out throughout the book.

Focusing on the intersection of macroeconomics and investment strategy, this book gives investment managers an economic framework to improve their understanding and performance in this ever changing global economy.

Author Biography

Tim McGee (New York, NY) is Director of Macro Strategy & Research at U.S. Trust, Bank of America Private Wealth Management, where he serves on the Investment Strategy Committee. Prior to this role he was a Chief Economist with the company. In this capacity he manages a team that researches global economic trends and turns them into strategies for investment professionals and high net worth clients.

Prior to joining U.S. Trust, McGee was a strategist and economist with UFJ and Tokai Banks. He is well known in Japan for his regular market column in the Nikkei Financial Daily. Over the years, he has been recognized by Bloomberg news, Business Week, USA Today, and the Wall Street Journal for outstanding forecast accuracy, including being ranked the number one forecaster several times. He has appeared on CNBC, Reuters, and Bloomberg TV and has often been quoted in various publications like the Wall Street Journal and New York Times.

McGee began his career in the academic world teaching at Florida State University and New York University. He also spent three years at the New York Federal Reserve Bank and one year as a fellow at the Netherlands Institute for Advanced Studies. He has published numerous articles in academic journals. He received his B.S. from the Georgia Institute of Technology and his M.A. and Ph.D. degrees from the University of Wisconsin. Some of his memberships include the American Economic Association, the National Association of Business Economics, The Forecasters Club of New York and the Money Marketeers. He has served as Chairman of the American Banker Association's Economic Advisory Committee, president of the Forecasters' Club of New York, and Chairman of the NABE (National Association of Business Economics) Financial Roundtable.

Table of Contents

1. Cycles and Trends
2. Business Cycles and Trends
3. Monetary Policy Cycles and Trends
4. Credit Cycles and Trends
5. Equity Market Cycles and Trends
6. Commodity Market Cycles and Trends
7. Other Major Trend Drivers: Technological Change and Globalization
8. Case Study: The 2007-2008 Financial Crisis