How the Real World affects Investments

The Real World and actual or anticipated developments can have drastic effects on Investments.  Economic factors are major inputs in considering Asset Allocation as well as Investment decisions in general.  Sadly most Trustees have little or no idea as to what these major and wide ranging factors are or how they work.

 

A non-technical overview of the meaning and effect on the markets of the following -          Growth                                               - Inflation and deflation -          Business cycle                                 - Interest rates -          Foreign exchange rates                  - International trade -          Unemployment                                 - Money supply