Economic Secrets You’re Not Suppose to Know
What they taught you in school barely scratches the surface of economic reality.
Why it matters: You must understand what drives economic change to discover financial opportunities.
Behind the scenes: Most news is just noise that captures clicks, followers, and likes.
- However, some news influences economic activity, but it is not always obvious.
- For example, the price swings of everyday items are a more vital indicator of economic change than the S&P 500.
- Influential social media posts often have a more significant impact than an article in a business newspaper.
What to watch: The economy runs on electricity, oil, food, and metals.
- A disruption in these areas will cause problems.
- Electricity is becoming the most crucial aspect of economic activity.
- Oil becomes transportation or electricity.
- Changes in food prices signify whether geopolitical relations are improving or deteriorating.
- Metals are a critical input for economic output.
Between the lines: What is reported and what is occurring are often very different.
- The green agenda is designed to create a carbon credit market.
- Major corporations announcing inclusive hiring are doing so to lower labor costs.
- Large shareholders have a more significant influence on companies than their customers.
Follow the money: Much has come to light since Estimand’s CR-2 causal AI has begun learning from global economic data.
- Companies with inclusive hiring practices have seen a steady decline in payroll expenses, including lower salaries.
- Organizations promoting sustainability are financially invested in green technology and carbon credit markets.
- Brands doing things that alienate their customers are under the influence of assertive shareholders.
Zoom in: Regardless of your position, the point is that economic activity has an agenda.
- By understanding the agenda, you can realize what will happen next.
- News explains the current agenda, but you must dig deeper to understand the impact.