Explanations for the financial crash and insights from an industry insider
During the 1970s, a strange hidden regularity in price movements from day trading emerged. This overall pattern would replicate itself on the daily level, eventually appearing at the weekly level, and then at a higher level of monthly activity. History, it became clear, really does repeat itself, and Economic Cycles: Mastering The Inevitable Shifts to Secure Your Portfolio looks at how and why this happens, and how to apply this information to day trading.
The financial crisis is just a manifestation of events set in motion many years ago, but the question of how to respond in the now is a serious one. Whether this is a natural consequence of the normal business cycle or not needs to be resolved in order to proceed in an effective, productive way. The one unifying core element of a financial crisis is that nothing ever changes, only the players and the instruments. The culprit is not merely the mortgage market. Neither is it exclusively Wall Street and big banks. It is a combination of blame that squarely rests both upon the public and private sectors.
* Explains how confidence has always been the determining factor; if people trust the state, the flight to quality will run to bonds fleeing the private sector; if they don't, there may be a violent swing towards hyperinflation
* Shows how the yield-curve provides clues to the swing between public and private confidence and how The Economic Confidence Model works
* Explains that everything in nature, including the markets, can be shown to function mathematically, conforming to what fractal geometry can reveal
Offering substantiated explanations for the financial crisis, this book is a fascinating read for anyone looking to understand the true nature of financial cycles.