So You Thought Stocks Only Go Up In Boom Times?

Martin Armstrong writes:

So you thought that stocks only go up in boom times? Sometimes the opposite takes place. Understanding CAPITAL FLOWS is the most important aspect of the economy, yet is the most overlooked and misunderstood trend in the financial history of man. … Capital revolves within a domestic economy, shifting from stocks, bonds, and real estate creating bubbles in one and then moves to the next. But there are times when that domestic flow is completely altered that can accelerate a given trend or reverse it entirely to the bewilderment of domestic investors. It is this latter combination that often causes the fundamental analysts to run around in circles. … Universities today merely regurgitate theories without observation. Politicians do not want to hear about INTERNATIONAL CAPITAL FLOWS for that implies they cannot do as they like if global capital presents a check and balance against of whims of politicians.

PDF of complete essay

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