Practical Macro
Learn to apply macroeconomic insights to real-world investment decisions and confidently navigate markets through every phase of the economic cycle.
Structure & duration
15-20 hours to complete
Online self-paced
Practical Skills Modules can be completed online at your own pace.
Prerequisites
We recommend candidates have familiarity with the principles behind Economics, Fixed Income, and Portfolio Management content from the Level II CFA curriculum.
Practical Macro PSM available starting with February 2026 Level III candidates. Not available to candidates sitting for a 2025 exam.
Overview of Practical Macro
In the Practical Macro module, you will learn how to apply top-down economic analysis to investment decision-making. You will explore how macroeconomic conditions affect capital markets and portfolio strategies, and develop skills to analyze key indicators such as GDP, inflation, monetary policy, and interest rates.
Macroeconomic awareness is essential for anticipating shifts in markets and adjusting investment strategies accordingly. For investment professionals managing portfolios or advising clients, the ability to interpret macro signals and translate them into actionable insights is a critical competency. This module bridges theoretical macroeconomics with practical, real-world application.
Through scenario-based videos, case studies, and interactive knowledge checks, you will gain hands-on experience using macroeconomic frameworks to assess economic environments, forecast market behavior, and make informed investment recommendations. Upon completion of this module, you will be equipped to integrate macroeconomic analysis into portfolio construction and strategy with greater confidence and impact.
Key learning objectives for Practical Macro
- Identify and evaluate potential investment targets through comprehensive deal screening and selection processes, utilizing market analysis and strategic frameworks.
- Conduct thorough financial due diligence to assess and mitigate financial risks, ensuring informed investment decisions.
- Understand and apply legal and tax due diligence processes to navigate regulatory requirements and protect investment interests.
- Analyze operational aspects of target companies to ensure post-investment efficiency and value creation.
- Develop valuation and deal structuring skills to optimize capital structures and achieve strategic investment goals.
- Implement effective monitoring and exit strategies to manage risks and maximize investment returns.
Key learning objectives by unit
- Unit 1: Practical Economics for Investors
- Unit 2: Imperative Data in Macro Analysis
- Unit 3: The Science of Financial Market Forecasting
- Unit 4: The Role of Monetary Policy in Macro Analysis
- Unit 5: The Misunderstood Role of Fiscal Policy
- Unit 6: The Dollar’s Role in the Global Economy
- Unit 7: Equity Markets Across the Business Cycle
- Unit 8: The Inseparable Bond of Earnings & Macro
- Unit 9: Myths & Misconceptions About P/Es
- Unit 10: The Ultimate Macro Discipline – Fixed Income
- Unit 11: Behavioral Finance Distortions in Macro Analysis
- Unit 12: Equity Analysis Meets the World Economy
- Unit 13: The Macro Roots of Asset Allocation
- Unit 14: The Dynamics of Sector Positioning
- Unit 15: Navigating the Cycle with Factor Leadership
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