Fisher Investments Press: Own the World: The Top-Down Process

Later in Own the World, some of the elements that Fisher Investments believes you should factor into your top-down decisions are examined. But before you jump headlong into top-down analysis, you need to know how the top-down process works. There’s a distinct hierarchy to top-down investing. All your investment decisions are important, but as Fisher Investments mentioned earlier, top-down investing starts with decisions that should have the greatest impact on your portfolio’s performance looking forward.

In all, there are three steps to top-down investing, which Fisher Investments explores in the rest of Chapter 5 of Own the World: How Smart Investors Create Global Portfolios from Fisher Investments Press:
1. Asset allocation.
2. Sub-asset allocation.
3. Stock picking.