Access to information for better decision making by Pedro Abelardo Maldonado Garrido

Friday November 18, 2022

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One of the effects of globalization has been the need to have access to a greater volume of information that allows for better decision making. When we talk about decision making, we are not only referring to those decisions made by the manager of a company who always seeks to generate value in his business, but also to the decisions that a person can make in the management of his personal finances.

Information is now abundant in magazines, newspapers, internet, social networks. However, two aspects must be taken into account: on the one hand, the veracity and reliability of the source; and, on the other hand, time.

Regarding the first point, it is clear that it is important to verify the origin of the source, especially when access is through the Internet. Regarding the time variable, it is vital to be able to have the information in real time, especially when facing the scenario of uncertainty versus volatility.

Companies linked to the international trade sector, as well as those linked to the financial sector, need to have accurate, reliable and updated information. One of the tools available to these companies for better decision making is Bloomberg.

The Bloomberg terminal is a global financial services system that operates 24 hours a day, continuously, providing economic and financial information about the different world markets. Precisely, both the external and internal fronts are currently facing a lot of volatility, which makes investment decisions difficult. For example, on the external front we have the trade conflict between the two world powers: the United States and China.

The positions taken by the authorities of these countries have immediate repercussions on world stock markets. Days prior to the writing of this article, the US government decided to apply new tariffs on Chinese products worth US$ 300 billion as of September, to which the Chinese government responded by devaluing the yuan as a measure to protect its exports. The consequence of these actions was a fall in world markets and a rally in safe-haven assets such as the dollar and gold.

In addition, on Tuesday, August 13, news arrived that the US administration decided to postpone the application of these new tariffs, which were to take effect on September 1. The effect: the stock markets are showing a rebound in their indices. It is therefore important to have this information as it happens in order to be able to take advantage of the direction the market will take.

On the domestic front, something similar is happening: the resurgence of social conflicts and political instability can generate negative effects on economic indicators in the short term.

Finally, it is important to mention the access that USIL students currently have to this Bloomberg tool through the Finance & Investment lab – FILAB, receiving training in its use, as well as its application in research work in different courses. The students now have the same tool that an analyst uses to make investment decisions. They are definitely enriching their academic training to face an increasingly competitive labor market.

Pedro Abelardo Maldonado Garrido

Academic Coordinator of the Administration and Corporate Finance program at USIL. Economist. Master in Administration and graduate of the Master’s Degree in Finance from Universidad Federico Villareal. He has worked at the Lima Stock Exchange, in the stock exchange area of Banco de Credito del Peru and various brokerage firms. He worked at the Canadian Imperial Bank of Commerce – CIBC and obtained a trader’s license to operate in equities in the province of Ontario.