Introduction to Global Economics (What, Why & How of this Section)

Chris Haroun
A free video tutorial from Chris Haroun
Award Winning MBA Professor, Venture Capitalist and Author.
4.4 instructor rating • 51 courses • 832,464 students

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The Complete Financial Analyst Training & Investing Course

Succeed as a Financial Analyst &Investor by Award Winning MBA Prof who worked @Goldman, in Hedge Funds & Venture Capital

22:31:28 of on-demand video • Updated April 2020

  • 22+ hour complete financial analyst course!
  • #1 Best Selling Investing Course on Udemy!
  • How to pick stocks.
  • Become an expert in Excel for financial analysts (no prior Excel knowledge is required).
  • How to manage a portfolio.
  • How an IPO works.
  • How to build financial models.
  • How to get hired and promoted as a financial analyst.
  • How risk management works.
  • How to use technical analysis.
  • How to value companies.
  • Use and create Excel based templates developed by Chris to help you create financial statements from scratch (meaning income statements, balance sheets, cash flow statements and more).
  • Use and create Excel based templates developed by Chris to help you value companies using several different valuation methodologies, including P/E, P/R and Discounted Cash Flow (DCF).
  • Use and create Excel based templates developed by Chris to help you manage a portfolio.
  • How Monetary Policy works.
  • How Fiscal Policy works.
  • How interest rates are changed and why this is crucial to understand for successful financial analysts.
  • How to pitch long and short ideas to portfolio managers.
  • How to find great venture capital investment ideas.
  • How to come up with mutual fund investment ideas (longs - meaning buys) using an easy to understand top down and bottoms up research process.
  • How to come up with hedge fund investment ideas (longs and shorts) using an easy to understand top down and bottoms up research process.
  • Identify crucial catalysts (timed events) in order to know when the optimal time is to buy or short a stock.
  • Understand how investment banks (the 'Sell Side') can help you be more successful in a hedge fund or mutual fund career.
  • Analyze and understand an income statement (even if you have no experience with income statements).
  • Analyze and understand a balance sheet (even if you have no experience with balance sheets).
  • Analyze and understand a cash flow statement (even if you have no experience with cash flow statements).
  • Understand and use modeling best practices so you can create financial models.
  • Know where to get data in order to build a financial model (in depth understanding of identifying and using/navigating the best free websites and sources to build your financial model)!
  • Create a financial model (projecting the future) for an income statement.
  • Other valuation methodologies, including EV/Sales, EV/EBITDA, P/B, EV/FCF, etc.
  • Create a financial model (projecting the future) for a balance sheet.
  • Create a financial model (projecting the future) for a cash flow statement.
  • Understand valuation best practices so you can create target prices based on your financial models.
  • How to use Discounted Cash Flow (DCF) and how to create the Weighted Average Cost of Capital and Terminal values in order to pick target prices.
  • How to use P/E in order to pick target prices.
  • How to use P/R in order to pick target prices.
  • Come up with a target price based on an average of several different valuation methodologies.
  • Learn about 14 different Financial Analyst jobs and how they overlap and work together (including Investment Banking, Venture Capital, Private Equity, Private Wealth Management etc.).
  • Investment Banking: Understand from a high level perspective what an Investment Bank is as well as what the role/job is of an Investment Banking Financial Analyst, including the pros and cons.
  • Venture Capital: Understand from a high level perspective what a Venture Capital firm is as well as what the role/job is of a Venture Capital Financial Analyst, including the pros and cons.
  • Private Equity: Understand from a high level perspective what a Private Equity firm is as well as what the role/job is of a Private Equity Financial Analyst, including the pros and cons.
  • Private Wealth Management: Understand from a high level perspective what a Private Wealth Management firm is as well as what the role/job is of a Private Wealth Management Financial Analyst, including the pros and cons.
  • Sell Side Research Analyst: Understand from a high level perspective what a Sell Side Research Analyst’s firm is as well as what the role/job is of a Sell Side Research Financial Analyst, including the pros and cons.
  • Sales Trader: Understand from a high level perspective what a Sales Trader’s firm is as well as what the role/job is of a Sales Trader Financial Analyst, including the pros and cons.
  • Buy Side Trader: Understand from a high level perspective what a Buy Side Trader’s firm is as well as what the role/job is of a Buy Side Trader Financial Analyst, including the pros and cons.
  • Mutual Fund: Understand from a high level perspective what a Mutual Fund is as well as what the role/job is of a Mutual Fund Financial Analyst, including the pros and cons.
  • Sell Side Trader: Understand from a high level perspective what a Sell Side Trader’s firm is as well as what the role/job is of a Sell Side Trader Financial Analyst, including the pros and cons.
  • Large Non Finance Company: Understand from a high level perspective what a Large Non Finance Company firm is as well as what the role/job is of a Large Non Finance Company Financial Analyst, including the pros and cons.
  • Equity Capital Markets: Understand from a high level perspective what an Equity Capital Markets’ firm is as well as what the role/job is of a Equity Capital Markets Financial Analyst, including the pros and cons.
  • Hedge Fund: Understand from a high level perspective what a Hedge Fund is as well as what the role/job is of a Hedge Fund Financial Analyst, including the pros and cons.
  • Equity Sales: Understand from a high level perspective what an Equity Sales’ firm is as well as what the role/job is of an Equity Sales Financial Analyst, including the pros and cons.
  • Tech / Artificial Intelligence: Understand from a high level perspective what a Tech / Artificial Intelligence’s firm is as well as what the role/job is of a Tech / Artificial Intelligence Financial Analyst, including the pros and cons.
  • Learn what finance role you are most passionate about pursuing.
English -: It's time for you to rotate in to the economics department of our firm. So, let's talk about the what, why, and how of the global economics for financial analyst portion of this course, which is what we will focus on actually for the next four sections of the course. Let me kick it off with the what. We will learn about three global organizations that matter most to financial analysts. The International Monetary Fund, the World Bank, and the World Trade Organization. In terms of why, why are we starting a financial analyst course by studying the global economy? Because, as financial analysts, we must understand that quite often the success of our financial investments that we work on are significantly influenced by international economics, okay? And many times, we get fooled by randomness. We don't focus on the global economy, and we just focus on individual stocks. Our stocks move, and we don't know why, but quite often it's because of a macro shock. Sometimes those macro impacts on a company can have much more of an impact than positive earnings or positive growth, okay? Don't worry, I'm not gonna cover any boring theory, this will be all practical stuff you can use. And also, when you rotate in to the investment banking portion of our training program, you're actually going to be able to advise your clients on the right timing for an initial public offering. If you don't understand global economics, then it can be catastrophic, right, if you tell a client to go public at the wrong time. Okay, and so we're gonna be recommending, hopefully, to Tony Shark and his company Shark Virtual Reality, when he should do the IPO. And don't worry at all, please. This will all make much more sense to you after we're done with the whole macro side of this course. The point here is that if you get the macro wrong, then the micro is meaningless, okay? So, as such, we're gonna focus on top-down right now, meaning understanding the fascinating bigger picture of a global economy, okay? And then we'll focus on bottoms-upward, financial statements, evaluation, equities, etc. later in the course, okay? When I worked at Goldman Sachs, and its various hedge funds, during our morning meetings before the stock market opened, our research analysts, or portfolio managers, would often start the meeting discussing macro events that might impact stocks, okay? Separately, when we analyze companies, we look at how much money they make, which is called revenue, you know that, right? Then we deduct expenses in order to calculate their profit. Now, I bring this up because similarly, when we analyze countries, we look at it the same way. Except revenue for a country is often referred to as GDP or Gross Domestic Product. Okay so, in part one of the macroeconomics portion of this course, we're also going to discuss how and why do the value of currencies increase or decrease. It's very important, okay? We'll also learn about what is called monetary and fiscal policy, and how governments can stimulate the economy using monetary and fiscal policy, and how they change interest rates. It's fascinating how it works. In terms of how, how are we gonna learn these concepts? Well, we're gonna have many Excel exercises in this part of the course. So, where can we download a lot of this global macroeconomic data for free, and then analyze it using Excel? Well, we can get it from the International Monetary Fund's website. So, the International Monetary Fund, which is also called the IMF, is where we'll begin with our economics discussion, which I'll explain in the next lecture. And in terms of the portfolio dashboard, which again, is saved as portfolio dashboard as an attachment in Excel format in section one of the course, by the end of sections three to six, which are the four economic sections we'll be discussing, you'll understand why we like to list these macroeconomic drivers on this dashboard. You know, you gotta keep an eye on some of these factors, depending on what sector you cover, what region of the world you're in, etc. If you're curious about the conditional formatting here, these cool flags and streetlights or whatever, we'll talk about how to do that later on in the course. That's called conditional formatting. Okay, I hope you enjoyed this section, thank you.