The Economists and Strategists
In addition to the equity and credit analysts who focus on analyzing individual companies, there are the economists and the strategists. The economists will give macro investment strategies based on their view of macroeconomics. An example of a macro strategy is to overweight equities and underweight fixed income, and to avoid autos. A strategist will give specific investment strategies about financial instruments. An example of a recommendation from a strategist is to buy 2-year equity options and sell 3-month equity options.
The conflict of interest issue still exists for economists and strategists in that their job is not to help the traders distribute the risk on their books. If a trader has a large position ...
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