What exactly is meant by the terms bottom-up and top-down investing?
Bottom-up investing is a term often used in the fund management industry to describe the style of investing which a particular fund manager adopts. Bottom-up investing focuses on the analysis of individual stocks and de-emphasises the significance of economic and market cycles. Bottom-up investing assumes that individual companies can do well even in industries or economies that are not performing particularly well. Top-down investing, on the other hand, is the complete opposite. Top-down investing focuses on the analysis of economic and market cycles and therefore de-emphasises the significance of individual stock picking. Top-down investing is an attempt to select individual stocks and industry sectors which suit the point at which the fund manager believes the economy, stock market cycle or indeed industry will move to next. I bought shares for my children when they were young. On the certificates my name appears first followed by A/c and the childs name. As my children are now in t
