BUSN1014 – Group Assignment Task: Evans and Partners
Part 1:
The two specific fundamental analysis techniques are known as the top-down approach and
the bottom-up approach. These two different methods of fundamental analysis are used by a
wide range of investors, share analysts and stock brokers to identify and produce relevant
evaluations and recommendations on different stocks. Demonstrates in the below
information, it can be observed that using both the top-down and bottom-up approach is a
smart and effective method for Evans and Partners The top-down approach involves the
observation of the ‘macroeconomic picture of the economy’. Furthermore, it has a major
focus surrounding the larger picture of share prices and bigger economic concepts including
inflation and interest rates. This approach can forecast and accurate future economic
environment thus allowing specific investments to be made with a greater accuracy. Investors
using this approach seek regions and industries that are expected to outperform the general
market without looking at the ‘individual performance of companies’. It is necessary for the
top down method to include all relevant macroeconomic issues that could affect the
