DXJ - Looking Through A Global Lens Part I: Probabilities And Opportunity In Japan
The Real Top-Down Approach Starts in the Sky
At Williams Equity Research ("WER"), we don't strictly follow a bottom-up or top-down approach. For those that are unfamiliar, here's a good visualization:
The reason we respect each methodology but do not follow one exclusively is because both have limitations. A bottom-up approach will inevitably overlook opportunities in markets never considered. A top-down style will similarly exclude highly attractive investments in the context of an otherwise overvalued market. A good top-down approach evaluates as many global markets as possible (hence the "sky" reference); a "global" top-down