7 Portfolio analysis

Question 1

Portfolio divers - economic drivers

Answer 1

• Related to the macroeconomic environment
• monetary policy
• real GDP growth
• debt levels
• infrastructure spending

Question 2

Portfolio divers - political drivers

Answer 2

government stability 
taxation
trade / capital barriers 
fiscal policy 
corruption
privatization
social stability 
general levels of freedom

Question 3

Portfolio divers - sentiments drivers

Answer 3

attempt to measure consensus thinking about investment categories
reflect expectation
surprises may move markets / sentiment