Global macro is the strategy of investing on a large scale around the world using economic theory to justify the decision making process. The strategy is typically based on forecasts and analysis about interest rates trends, the general flow of funds, political changes, government policies, inter-government relations, and other broad systemic factors.
Macro trader Yra Harris claims that "global macro" is really a new term, which used to be called "geopolitics." George Soros famously employed a global macro strategy when he sold pound sterling in 1992 at the time of the European Rate Mechanism debacle.
In an Opalesque Roundtable discussion of global macro, hedge fund manager John Burbank discussed the increasing importance and shift of private and institutional investors toward more global macro strategies. Burbank defined global macro as "having a reason to be long or short something that is bigger than a fundamental stock view."
Read more about Global Macro: Global Macro Trading
Famous quotes containing the word global:
“Much of what Mr. Wallace calls his global thinking is, no matter how you slice it, still “globaloney.” Mr. Wallace’s warp of sense and his woof of nonsense is very tricky cloth out of which to cut the pattern of a post-war world.”
—Clare Boothe Luce (1903–1987)