Global Macro is an investment strategy that focuses on large-scale economic trends and events across the world. Investors analyze various factors, such as interest rates, inflation, and political stability, to predict how these elements will impact financial markets. By understanding these macroeconomic indicators, they can make informed decisions about where to allocate their resources.
This approach often involves trading in different asset classes, including currencies, bonds, and commodities. Global Macro investors aim to capitalize on shifts in the global economy, using both long and short positions to profit from market fluctuations. Their strategies can be influenced by events like central bank policies and geopolitical tensions.