How growth affects financial markets

Every investor should understand the relationship between growth and the return of different financial assets. Economic growth is central to the performance of all asset classes and to the relative performance among different asset classes. There is direct causality running from economic growth to growth in corporate earnings, to demand for commodities, to the outlook […]

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How Markets Work – 1

Most people struggle to become good investors. They struggle because they never properly learn how financial markets work. They don’t understand why stocks, bonds and other financial assets go up at certain times times and why they go down at others. If we don’t understand why markets go up and down we can never anticipate […]

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