What it is:
How it works/Example:
A market strategist tries to predict the future market climate as a pretext for buying and selling investments. For example, a market strategist may recommend that an investor buy bonds based on his predictions that interest rates will go down in the future.
A market strategist must remain current on market movements as well as the variables that affect the economic climate. Market strategists typically work as advisors to an organization or as part of a brokerage house.
Why it matters:
Since a market strategist's recommendations are based on economic and market forecasts, there is significant margin for error. The reason for this is that, truthfully, it is not possible to predict future market movements. Investors are advised to keep this in mind when considering a market strategist's recommendations.