This 1-day course provides a comprehensive understanding of the various Macroeconomic concepts commonly deployed in the financial industry. Be it in the formulation of investment strategies or a broad appreciation of how the various segments of the financial industry are interlinked via the common thread of macro-economic environment, a good and broad understanding of macroeconomic concepts is essential for a financial professional to function well and advance in his/her career in the industry.
This course covers the basics of key macroeconomic concepts but also go beyond that and address the practical usage of that knowledge; without going to the extent of being too technical and arcane.
Target Audience
- Covered persons working in private banks
- Wealth advisers
- Financial professionals in the banking and financial services industry
Course Outline
Economic Growth
- Analysis of the trend
- Analysis of the cycle
- Relationship between economic growth and stock prices in the long-term
- Relationship between economic growth and stock prices in the short-term
Business Cycles Fundamentals
- Business cycle durations
- Transmission effects
- Interest rate cycle
- Business cycle, growth cycle, and growth rate cycle
- 4 phases of growth rate cycle
- Growth rate cycle and asset-class performance
- Taylor rule
- The idea of neutral rate
- Sector rotation
- Equities
- Bonds
- Commodities
Economic Indicators
- Four engines of the economy
- The most important US numbers
- The idea of inverted yield curves
- Intermarket analysis
Monetary Policy
- What are central banks trying to do?
- Monetary policy tools
- Reserve requirements
- Policy rate
- Open market operations
- Other “unconventional” policy tools
- Open mouth operations
- Operation twist
- Credit easing
- “Negative” interest rates
- FX intervention
- Quantitative easing
- Quantitative tightening
- QT vs. tapering
- Price levels
- Types of inflation
- Problem of inflation
- Inflation targeting
- Deflation
- Stagflation
- Monetary policy in developing countries
Fiscal Policy
- Types of fiscal policy
- Why fiscal policy does not always work
- Fiscal policy and debts
About Our Trainer
Our trainer brings decades of expertise in investment, treasury, and wealth management training. A derivatives and financial markets specialist, he has managed institutional trading risk and designed learning solutions for global banks. Holding three international designations in investment and risk, he has trained candidates for over twenty years, completed fintech studies at a leading institution, and advises startups on financial products.