Chapter 39 Trends, Data, Correlations, and a Few Other Things—Again

A trader may be able to exploit an intra-day trend in a stock and have it play out, but economic trends tend to last longer. They can be driven by bureaucratic or politically controlled “regimes” or from unplanned forces that dominate the economy. An example of a controlled regime would be the “easy money” low interest rate policies put in place after the great recession by many central banks around the globe. An example of a more unbridled trend was the digitization of media, which started in the early 1980s with music CDs106 and has since included all forms of media and data. While the intra-day trade is valuable, shifting capital to invest in a major trend is very powerful ...

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