Topic 1 & 2- Introduction to SAPM, Flashcards
What are the steps in a successful investment management process
security analysis
portfolio management
What are the lessons from developments in the global investment banking
global financial crisis
corporate and accounting scandals
biased research reports
What are the monetary policy components?
OMO
RR
Discount rate
Exchange rate
What are the long term influences on supply?
technology
labour
resources
investment incentive
What are the short term influences on demand?
monetary policy fiscal policy inflation interest rates consumer sentiment international influence real effects
What are the forecasting tools
cyclical economic indicators
surveys of sentiment and expectations
econometric modelling
What are the cyclical economic indicators
leading
coincident
lagging
What are the pros of EIC
systematic and structured
logical
BF kings theory
What are the cons of EIC
cannot predict real effects Does not guarantee good investments miss out on good companies lack of information in less developed countries time consuming process
What are the reasons for the global financial crisis
government deregulation
active buying and selling of complex investment products
excess short selling
credit rating companies fail to assess risk
What do fraudulent analysts face with
barred
heavy fines
What are the official indicators released by MTi
NORI
US manager purchasing index
economies of major trading partners
