All this economic talk just boils down to a big trade really.
Economy on the way up, inflation controlled = borrow to invest [be leveraged long]
Economy on the way down = borrow to invest [be short]
Economy inflational = get some assets and hold on for awhile.. stocks tend to vary inversely with inflation rates, probably the short side is going to be more rewarding for short to mid term trades...
Economy deflational = sell your assets at the top, get short everything and buy assets after the bottom
That's sort of funny, stocks seem to fall in inflation AND deflation..
Correct me if I'm wrong, I'm far from an expert, just some food for thought..
Economy on the way up, inflation controlled = borrow to invest [be leveraged long]
Economy on the way down = borrow to invest [be short]
Economy inflational = get some assets and hold on for awhile.. stocks tend to vary inversely with inflation rates, probably the short side is going to be more rewarding for short to mid term trades...
Economy deflational = sell your assets at the top, get short everything and buy assets after the bottom
That's sort of funny, stocks seem to fall in inflation AND deflation..
Correct me if I'm wrong, I'm far from an expert, just some food for thought..
