Goldman Sachs: Should We All Be Macro Stock Screening? .
December 26, 2012 - 10:56pm
By SeekingAlpha2012 has, of course, yet been another year dominated by Macro, with wild swings in sentiment caused by the European debt crisis and the threat of Middle Eastern conflict. The “risk-on” vs. “risk-off” attitude of the market has been driving most hardened stockpickers nuts. In this context, Goldman Sachs (GS) published a very interesting piece back in June this year entitled "Bridging Macro To Micro: GS Top-Down Stock Selection", which looked at the interplay between macro and micro factors in relation to stock-picking. It's focused on Asia, but a lot of the thinking is of general interest.Goldman's thoughtful approach is essentially systematising the kind of "trouble in Iran -- rising oil prices should drive this stock" anecdotal macro handwaving that you so often see from analysts and market pundits. The aim wasContinue reading this article »