Assessing Economic Forecasting Tools for Portfolio Management

As a senior portfolio analyst for a wealth management firm, you have been asked to prepare a comprehensive report on the implications of utilizing various economic forecasting tools in the development of investment strategies. Specifically, your report should address the strengths and weaknesses of at least three specific forecasting methods—namely, time series analysis, leading economic indicators, and the structural econometric models. Discuss how each tool can provide valuable insights into economic trends, and elaborate on how these insights can influence asset allocation decisions for a diverse client portfolio. Include in your discussion the importance of integrating qualitative analysis with quantitative forecasting techniques.