What Is Top-Down Investing? - TheStreet Definition

Dictionary of Financial Terms

This describes an investing approach in which managers first look at, say, the big picture in the economy. They then predict what industries or sectors are poised to do well, and then they buy stocks within those industries. Some top-down investors begin with quantitative screens to choose sectors, while others take a more thematic approach. An example: playing the "aging of America" theme.

Definitions of Financial Terms