Should Individual Investors Care About Anything Macro?
Do not be misled about what matters for investment performance
If you only consult social media accounts or influencer advice about personal finance topics, you will often hear “Hey, ignore everything macro” or “Macro does not matter if you are a long-term investor”. This is, unfortunately, a fallacy. Global macroeconomic developments can have a quite significant impact on individual investors’ portfolios and as such, they must be at least understood and there must be at least a basic level of awareness so that you don’t overexpose yourself to unwanted risks or be surprised by shocks that impact asset values, even over the long term.
This note is for educational and information purposes only and expresses the author’s opinion. It is not intended as investment or financial advice. If you like this story, you can follow me here on Medium, on other social media, or check out and subscribe for free on my website: https://moneycraft.org.
What do we mean by ‘Macro’?
In simple terms, looking at how an individual company performs, for instance, and what is driving its performance (earnings and revenue growth, the strength of its balance sheet, leverage, risk of default, etc.) is a micro (or idiosyncratic) perspective…
