Wednesday, September 16, 2015

EQUITY RESEARCH Step-by-step Approach to Industry


  1.  Study statistical relationships between industry trends and a range of economic and business variables 
  2. Develop practical, reliable industry forecasts by using various approaches to forecasting 
  3.  Check the chosen industry’s past trends, demand-supply mechanics and future outlook
  4. Examine industry performance
  •             In relation to other industries to identify industries with superior/inferior returns and
  •             Over time to determine the degree of consistency, stability, and risk in the returns in the            industry.
     5. The objective of this analysis is to identify industries that offer the highest potential for investment returns on a risk-adjusted basis. The investment time horizon can be either long or short 
     6. Take up an industry and find out the sectors. Select the particular sector that is doing well and its prospects are good. Moreover, it is worthwhile to look at the different market segments in a particular sector.

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