Understand the components and types of economic cycles and their implications on investment management. Additional topics to be covered include Monetary and Fiscal Policy.
Introduction to Economic Cycles
INTRODUCTION This week, let’s focus on getting the basics of an Economic Cycle right. When you’re through with this article, you’d no longer feel lost when the wizards on Financial Times say stuff like “Expect a serious economic contraction in Q2 of year 2034”. Alright, let’s jump right into it! What is a Cycle? A…
Shapes of Economic Recovery
In order to understand the behaviour of the economic recovery from the COVID-19 pandemic, the different shapes of recovery has been a hot topic of discussion in most forums. Howard Marks draws a beautiful analogy in his memo stating, “The government will provide life support to the economy during the coma and bring the patient…
Mastering the Market Cycle by Howard Marks
Setting the context: Howard Marks is a legendary billionaire investor and has received acclamations for his memos by Warren Buffet himself. He is the Co-Founder and Co-Chairman of Oak Tree Capital Management and has about 50 years of investing experience under his belt. Through his books “Mastering the Market Cycle” and “The Most Important Thing”,…
Monetary Policy Introduced
Setting the Context: In this week’s article, we shall go over “What Monetary Policy exactly means? What are the types of monetary policies at the bay of the Central Bank? What are the challenges that arise in implementing them successfully? Then finally, a mini snapshot is presented on India’s policy response to the pandemic. What…
Economic Moat
Setting the context: In this article, let’s understand the term “Economic Moat”, what it entails and how we can identify one. What is an Economic Moat? This term was popularised by Warren Buffet. An Economic Moat is a company which can retain a competitive advantage over its peers in the long run and thus protect…
Hyperinflation
What would you do if you had a 100 billion dollars? Hold your horses. Forgot to mention those 100 billion dollars would be Zimbabwe dollars. The country has been spiralling in hyperinflation for a long time now. Since the year 2000, the prices have only been shooting upwards and onwards at a crazy rate. As…
Different Economic Schools of Thought
In this week’s article, I am going to walk you through 3 Economic schools of thought, namely, Laissez-Faire Economics, Neoclassical Economics and Keynesian Economics. So, let’s jump right to it! Laissez-faire Economics What is Laissez-faire Economics? According to the “Laissez-faire” economic school of thought, the economy works best when the government does not intervene in…
Coffee Time Finance 