Global Macro managers analyze macroeconomic data, central bank policies, inflation trends, and geopolitical developments to forecast movements in currencies, equities, fixed income, and commodities. These strategies may be discretionary or systematic, and typically involve directional trades across asset classes using derivatives and leverage. They are well-suited for high volatility environments and often exhibit low correlation with traditional asset classes, making them attractive to allocators seeking diversification. Global Macro funds may also use hedging techniques and stress testing to manage exposure across geopolitical regimes or crises.