CHART OF THE DAY: Base Effects (They Matter More Now Than Ever)

If you are new to our measuring and mapping process and you don’t yet understand “base effects”, every serious investor should. As we outline on slide 16 of the current Q3 Macro Themes deck, the Base Effects matter more now than they ever have: 

1. As the economy has gotten increasingly more reliant upon FINANCIAL LEVERAGE to replace a lost 300 basis points of organic growth potential…
2. Both GROWTH and INFLATION have become decidedly more cyclical throughout the POST-CRISIS era and since COMMODITIES took off in the early 2000s, respectively 

As you can see in the Chart of The Day, this is largely a demographic (demand) reality. It’s not an opinion. So if you think it’s Trump tweets that are making the global economic cycle go round, you should think about that all over again.