Impact of Macroeconomic Indicators on Investment Strategy

As a portfolio manager, you are tasked with analyzing the economic environment to make informed investment decisions. During a recent economic briefing, it was reported that the unemployment rate has decreased steadily over the last year, GDP growth has shown signs of acceleration, and inflation is currently at the central bank's target rate of 2%. In addition, consumer confidence indices have improved significantly, indicating a positive outlook among consumers.

In this context, discuss how these macroeconomic indicators (unemployment rate, GDP growth, inflation, and consumer confidence) can influence your investment strategy and asset allocation decisions in both the short and long term. Support your analysis with specific examples.