Global Macro Strategy

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DEFINITION of 'Global Macro Strategy'

A hedge fund strategy that bases its holdings - such as long and short positions in various equity, fixed income, currency, and futures markets - primarily on overall economic and political views of various countries (macroeconomic principles).

BREAKING DOWN 'Global Macro Strategy'

For example, if a manager believes that the U.S. is headed into recession, then he or she might short sell stocks and futures contracts on major U.S. indexes or the U.S. dollar. Or, a manager seeing big opportunity for growth in Singapore might take long positions in Singapore's assets.

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