1. The Three Corners
Inflation, growth, and policy—the relationship among these three variables defines the character of an era. When they align, you get prosperity; when they misalign, you get inflection points.
The misalignment of the past five years has been particularly stark: slowing growth, rising inflation, and reactive policy. This state won't last forever, but it won't end abruptly either.
2. The Response Is Not "How to Trade" but "What to Allocate"
In a misaligned-triangle environment, what matters is not short-term trading rhythm but structural asset allocation: companies with low valuations, pricing power, and stable cash flows will hold up better than high-growth narrative stocks.
Moreover, in this environment, the real risk is not a market decline but "missing the repricing"—when the triangle realigns, valuation recovery happens fast, and being underinvested hurts more than a drawdown.
