MACRO ECONOMIC SECTOR OUTLOOK Essay Example | Topics and Well Written Essays - 750 words

MACRO ECONOMIC SECTOR lookout station - Essay ExampleThe renovations provided by the telecommunication heavens has become a necessary service for us for our daily life, and hence it foot well be expected that consumers as well as business enterprises will not be able to reduce their spending on this service take down in recessions. Thus the investment potential of the telecommunication orbit seems to be very bright. To gain much from our investments, we can invest in the telecommunication sector of the highly growing markets of India, China, Turkey, etc., while retaining our exposure to European countries and the ground forces. FINACIALS The kindle rate sensitivity of the financial sector is very high and this sector shows a inclining of providing wide during the period of low interest rates. Since, the level of interest rates in the USA and European nations are now quite low at the phase of economic convalescence, the investments in the financial sector of these nation s are expected to provide excellent performance. However, presently investments in this sector involve a great amount of risk due to high inflation in Asian countries and Obamas financial policies relating to trade. callable to this reason, we are underweight in this sector. But this should not be a thing of great trouble as we still possess sufficient weights for having adequate return on out investments. However, we should be on the lookout about our investment decision in China due to increase in the rate of interest in this nation. Hence, we should limit out exposure to china and concentrate more on the financial markets of USA and Europe as interest rates can be expected to remain low here. MATERIALS The materials sector has a tendency to outperform other defensive areas during economic expansions. The materials sector is such a economic field where we can be overweight. Investments in this sector at this time or in come on future could be a bit risky as it may loose its gr owth pulse after the fast growth that it has been experiencing for some time. Moreover, the sector is suffering form lower demand from countries identical China which is lowering the prices and negatively affecting the overall performance of the sector. However, we are still maintaining our exposure to this sound commodity sector as we expect that even with lower demand this sector will be able to provide better performance compared to other defensive sectors. ENERGY The energy sector is matchless of those sectors which are expected to provide lucrative returns. This sector has a quite high dependence on oil color prices. Since, oil prices are expected to follow an increasing path in future, the energy sector is expected to outperform other areas. Oil prices are expected to rise for a number of factors including lessening in supply of oil by OPEC, increase in demand for oil with economic recovery in USA, Europe, China, India and other nations, expansion of money supply in the USA that is expected to create inflationary pressure. Thus, it will be a great decision to maintain our exposure in the energy sector. We can also increase our exposure in this sector. We are also increasingly investing in oil services and exploration as they are now placed on high growth path. CONSUMER STAPLES beingness a defensive sector, the sector of consumer staples is facing lower growth opportunities in this period of economic recovery. rising prices of foods has produced negative impacts on the