America's Fall: Is It Closer Than We Think?
The End of the American Dream?
When will we see the fall of the United States? This is one of the most frequently asked questions today. Many economists are making predictions, and perhaps the most well-known is Ray Dalio's. We have already discussed his perspective in many newsletters, so today we will delve into our own perspective.
The first thing we need to understand are the rules of the economic game. We have mentioned this many times before, but it is essential for any analysis. There is little sense in closely following the actions of multiple companies for two main reasons:
If you truly enjoy understanding a business, seeing how it invests its money and how it grows, the most sensible thing is to get into the business world yourself or create your own company. This way, you can be the one managing the possible outcomes.
If what you really want is to make money, the ideal focus should be on a macroeconomic factor, and that factor is liquidity. The correlation between liquidity and the S&P 500 is around 90%.
Wit…