KFA Market Commentary
The investment committee here at Kabarec Financial Advisors (KFA) uses what is called a Top-Down Investment Approach to selecting the holdings within each of our investment portfolios. So what is the definition of Top-Down Investing?
This is an investment approach that involves looking at the "big picture" in the world economy, domestic economy, and financial markets then breaking those components down further into industry, sector, and finally specific companies. After looking at the big picture conditions around the world, the different sectors are analyzed in order to select those that are forecast to outperform in the current environment. From this point, the stocks of specific companies are further analyzed and those that are believed to be the best are chosen as portfolio investments.