How can trends and changes in trends be predicted based on monetary and fiscal policies?
The wavy movements that affect the economic system, followed by booms and busts, are the inevitable result of continuous attempts to expand credit and reduce market gross margins. There is no way that the boom created by expanding credit can avoid its eventual collapse. The only options are to voluntarily forego further credit expansion and make the crisis come sooner, or to wait for the complete collapse of the monetary system later.
According to the government's fiscal policy and monetary policy to predict the long-term trend of the market, basically in the scope of economic circulation, using the basic economic principles of thinking. The whole question revolves around how to gauge the mindset of politicians, how to evaluate the speeches of the president, the Treasury secretary and key Fed officials. There are really only two long-term possibilities for prices: up or down. The turning point will come when the Fed acts in concert with government fiscal policy or tries to reverse declining market trends on its own initiative.
Content from the Theory of Professional Speculation
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