The Four Quadrants of the Economic Cycle
Updated
Use this as tailwinds for your trading and investments to spot the capital inflows when the time comes.
I would say we are likely in the inflationary bust stage (1) coming out of the disinflationary boom stage (4) for the last decade and beyond.
I would dare say the Inflationary bust stage is next (2) as the central banks try to kill inflation by raising rates and destroying asset prices.
To fix the economic damage they would have to eventually change their monetary policy which would then bring us into an inflationary boom (3)
The cycle repeats over and over but I'm positioning for the Inflationary boom stage (3) as I believe this stage will last many years.
I would say we are likely in the inflationary bust stage (1) coming out of the disinflationary boom stage (4) for the last decade and beyond.
I would dare say the Inflationary bust stage is next (2) as the central banks try to kill inflation by raising rates and destroying asset prices.
To fix the economic damage they would have to eventually change their monetary policy which would then bring us into an inflationary boom (3)
The cycle repeats over and over but I'm positioning for the Inflationary boom stage (3) as I believe this stage will last many years.
Note
Disinflationary bust (2)**
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