Numerous firms are now advocating for strategies incorporating multiple variables when assessing investment opportunities. This includes utilizing a broader range of economic indicators, industry trends, and geopolitical influences. Some investors believe this approach provides a more comprehensive understanding of potential returns and risks. The focus is shifting away from relying solely on basic models, emphasizing a more sophisticated and data-driven analysis. The adoption of complex techniques is largely driven by a desire for greater precision and a reduced risk of overlooking important variables.
Credits: Finance & economics