Top Down

From Reuters Financial Glossary

An investment strategy that tries to achieve a balance in an investment portfolio by selecting various sectors or industries. If a fund uses a top-down approach it will look at general economic or market trends to find the best sectors to invest in. Then it will look for the best investments within that sector. A fund may also choose countries, before it chooses sectors and finally the individual companies within those sectors. Opposite of bottom up.

See also: Bottom Up