What Do U Think About Global Macro?

[Ammeo 10]

Its typically based on forecasts and analysis about interest rates trends, the general flow of funds, political changes, government policies, inter-government relations, and other broad systemic factors...Like you go against the Euro cause u think its in crisis and there's no resolution in near future,in the same time you buy Australian or Canadian Dollar cause u think it'll head up based on current and future economic factors ...

Global Macro can minimize the risk if u know how to use it...for example USD and EUR always go in the same direction while the AUD,JPY,Gold,Oil most of the time move in the opposite....Having a big position in USD or EUR favor (after full analysis and study) while taking some small positions in AUS or Oil may minimize the risk in long term if anything goes wrong...

Pllzzz shed some more light aswell if i missed something regarding its definition...

Edited February 12, 2013 by Ammeo

[SIUYA 11]

Global macro is pretty much a fund descriptive term.

It directs asset allocations to help determine the type of fund they might invest in.

Relevant if you are trading a portfolio maybe - to offset positions in. Or take purely directional or uncorrelated spread trades in things that are not limited by regional or specific sector boundaries - usually set as a mandate on the fund managers.

 

Otherwise - we are all micro global macro managers these days.

[TheDude 10]

Global macro is pretty much a fund descriptive term.

It directs asset allocations to help determine the type of fund they might invest in.

Relevant if you are trading a portfolio maybe - to offset positions in. Or take purely directional or uncorrelated spread trades in things that are not limited by regional or specific sector boundaries - usually set as a mandate on the fund managers.

 

Otherwise - we are all micro global macro managers these days.

 

Right.

 

Also, I saw a bar chart of various strategies and their performance, and also a correlation to the S&P500.

 

Global Macro funds arent doing too well recently - so as a strategy, its going out of vogue. However what I thought was interesting was the high correlation to the S&P500. I cant figure out why GM is doing so poorly given the S&P is doing so well.....

 

It shocked me, as I thought I knew every thing! :crap: :haha:

[Ammeo 10]

Right.

 

Also, I saw a bar chart of various strategies and their performance, and also a correlation to the S&P500.

 

Global Macro funds arent doing too well recently - so as a strategy, its going out of vogue. However what I thought was interesting was the high correlation to the S&P500. I cant figure out why GM is doing so poorly given the S&P is doing so well.....

 

It shocked me, as I thought I knew every thing! :crap: :haha:

 

Could HFT be responsible for it? or maybe the uncertainties of the global economies?