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Investment Management

Measure The Economy's Influence

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 Over 90% of price variation in most stocks, mutual funds, and ETFs is caused by specific economic changes.

With our tools, we can understand how your portfolio responds to changes in the economy.

Since over 90% of most assets’ price variation is driven by the changing economy, it is vital to understand how specific economic changes impact your portfolios. MacroRisk Analytics makes that easy. Our tools are built expressly for our firm and enable us to reduce your economic risk while taking advantage of the current economic climate.

 

MacroRisk Factors

MacroRisk Analytics has isolated 18 macroeconomic and financial variables, including Unemployment Rate and Consumer Price Index that greatly influence the performance of most individual assets. When the effects of these 18 MacroRisk Factors are taken together, they represent the influence of the entire economy on an asset’s price.

 

View Macrorisk Factor:

 

      
  • FTSE 100
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  • Gold Index
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  • Corporate Bond (BAA) Yield
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  • Consumer Price Index
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  • Short-Term Gov’t Bond Yield
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  • Intermediate-Term Gov’t Bond Yield
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  • Long-Term Gov’t Bond Yield
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  • Tokyo Stock Exchange Index
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  • Euro Exchange Rate
      
  • Agricultural Exports
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  • Housing Starts
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  • Monetary Base
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  • M2 Money Supply
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  • Corporate Cash Flow
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  • Unemployment Rate
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  • Auto Sales
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  • New Durable Goods Orders
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  • Energy Prices

 

Eta Measures

An Eta Measure is our patented description of how an asset typically responds to a specific change in the economy.

 

View more on Eta Measures

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Every asset has 18 Eta Measures, one for each of the 18 MacroRisk Factors. Eta Measures that are positive indicate that an asset increases in value when the corresponding MacroRisk Factor rises; conversely, Eta Measures that are negative indicate that an asset’s price decreases when the corresponding MacroRisk Factor rises. Together, the 18 Eta Measures show an asset’s overall relationship to the economy.
By using Eta Measures, we can give you valuable information that other financial professionals can’t provide. For example, we can quickly and easily see which MacroRisk Factors are currently undergoing an unusually large change – these are the ones that may be putting your portfolios in danger, or driving them up to new heights of success. With this information, we can give you solid advice as to how today’s economy may be helping or harming your individual assets and portfolios. We can also use our tools to compare how two completely different assets typically react to the same economic changes, giving you a reliable benchmark that can be applied to most stocks, ETFs, and mutual funds.