Then, base your investment decisions on your findings. [substeps] For example, if the economy is performing poorly (inflation and unemployment are high while national output is low), avoid overpaying for stocks and be sure to diversify your stocks.
[header] How to choose stocks [title] Understand how macro analysis works. [step] Macro analysis has its basis in the large (macro) tendencies observed in the economy. Your goal is to understand how major forces are affecting the performance of the economy.