[MUSIC] Hi, there. So what you will learn in this module is two things. The first will be dealing with portfolio constructions. And we will find here that are two basic ways in which you may build them, top down and bottom up. And also we will see in the second part of the module, some different investment styles. So starting with portfolio construction, top down. We will see more details that this is the kind of method which is used by people like me, actually [LAUGH], a macroeconomist, or macrostrategist. They start from a global picture of the real economy, worldwide. Then we move to countries, sectors to look at sociopolitical trends, population growth and aging population. This is a very important factor. Now we look at the pyramids and how it moves through times because we know that aging population does have an impact. On the appetite for risk. And also we look last but not least at economic policies. And we have a special emphasis on central banks. We have been discussing in this course about central banks because they are a key player for financial markets. But obviously fiscal policy is also a major thing to look at when you're doing this top down approach. The alternative to the top down, is the bottom up approach, and it can actually be used in conjunction with the top down, or on it's own. And how does it work? Well this is more a method for micro as opposed to macro economists. IE, those who focus on evaluating companies as opposed to markets, countries, and sectors. So, here we rely on security selections. And we'll see the various criteria you can use a qualitative filter, i.e of those which are derived from primary or secondary research. We will see what we mean by that and you could also use quantitative Filtering, i.e you rank the companies on some valuation metrics, such EP's, price to earnings, multiples, or price to cash flows, or return on equity, and so forth. And you use technical analysis for finding the good entry point, and build your position into that single stock. In the second part of this module we will have a look at some investment styles. We talk about investment styles, the first one that comes to our mind is value versus growth, and we will see what we mean by that. Value basically is cheap, growth is expensive, but we'll go into more details. And we'll see who is supposed to deliver more returns in the long run, between value and growth. We will also have a look at the fundamental versus quantitative way of managing your portfolio. I just alluded to this, in saying that you may put some quantitative or qualitative filtering to build your portfolio when you're using the bottom-up method. And also a third type of strategy, or two types of strategies which are opposed one to the other and make extensive use actually of the technical analysis I just alluded to. And this is called momentum strategies, or contrarian strategies, i.e you do the opposite. Basically you see the stock dropping, and you use some technical tools, and if you see that the move has been too sharp, basically you buy the stock because you think that there's going to be some reversion to the mean, or to the trend and so you want to profit from that. Indeed, a lot of today's algorithm, the high frequency traders. They make extensive use of these two strategies. A fourth strategy we will have a look at, and through our corporate sponsor, is what we call thematic investment. Basically here, we're not looking at a country. We're not looking at a sector, or a market as a whole, but we're looking at an investment theme. Water can be one. Aging population can be another one. And once you define that theme, you look at sectors, and the companies which will benefit from this given theme which you then analyze through various, macro economic or macro fundamentals. And last but not least, we will also have a look at the core versus satellite approach. And we will see another approach linked to that which we call portable alfa, but I leave you to go into the videos to find out more details about these various styles. [MUSIC]