How to judge the macro environment

The judgment of the macro environment can be simply divided into two aspects: the policy aspect and the capital aspect.

Policy

Investment must follow the trend, and “potential” refers to the policy aspect. Paying attention to the policy aspect and targeting the areas where high-quality stocks are most likely to appear will greatly increase the success rate of stock investment. The stock market fluctuates due to changes in national policies, which is called the policy side. Generally, we can divide policy into three categories: industry policy, fiscal policy, and monetary policy.

industry policy

Refers to industry-specific regulations, guidelines and measures formulated and implemented by the government or relevant agencies. Industry policies aim to guide and promote the development of specific industries in order to support economic growth, enhance competitiveness, adjust industrial structure, and solve existing problems in the industry. Observe the development prospects of various industries and related policy changes. Different industries may exhibit different trends and growth potential in the macro environment. Follow US economic data such as GDP growth rate, job market conditions, inflation data, retail sales and more. These data reflect the overall health of the economy and have important implications for markets.

Fiscal policy

A series of measures and policies formulated and implemented by the government to regulate economic operations. It affects the aggregate demand and supply of the economy by adjusting aspects such as government spending, taxation, and debt to achieve macroeconomic goals and stabilize economic growth.

Monetary Policy

A set of measures and policies formulated and implemented by a central bank or monetary authority aimed at regulating the money supply and credit conditions in an economy in order to influence economic activity and achieve macroeconomic objectives.

Funding

The money circulating in the market is collectively referred to as the capital side. Generally speaking, the looser the monetary policy in the stock market, the more abundant the funds, the better the stock market; the tighter the monetary policy, the tighter the funds, the more negative the stock market.