Macro economics focuses on large scale national and international economic factors. I broaden my analysis, by what I call Super Macro, to include the philosophy and culture of the socio-economic environment. Just as the rate of change of economic activity presents significant investment opportunities, so too, the rate of change of a society’s philosophy and culture does the same.
There is a constant interplay between philosophy and economics. Ultimately, philosophy is more influential with economic opportunity and investment success. What we think about and what we care about determine the future The right or accurate philosophy creates a culture for or against general investment and what type of investment.
There are occasions when the stated or advertised philosophy is in conflict with the underlying reality of that society. This deviation is critically important as it will lead to the wrong perceptions and the misallocation of resources. The concomitant inefficiency will lead to disastrous investment results.
In an historical context, it appears that eventually many capitalists do not want free markets and many communists do not want socialism. Some who are able to attain power using a publicly supported philosophy, at some point, change their personal philosophy to purely self interest.
Thru this process, the investment considerations are profound.
For more insight, read my book; INVESTMENT DILEMMA
blog: www.reasonatrisk.com