Investors using fundamental analysis can use either a top-down or bottom-up approach.
The top-down investor starts their analysis with global economics, including both international and national economic indicators. These may include GDP growth rates, inflation, interest rates, exchange rates, productivity, and energy prices. They subsequently narrow their search to regional/ industry analysis of total sales, price levels, the effects of competing products, foreign competition, and entry or exit from the industry. Only then do they refine their search to the best business in the area being studied.
The bottom-up investor starts with specific businesses, regardless of their industry/region, and proceeds in reverse of the top-down approach.