Ep. 460: Billionaire Words with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Fear of the Fed Raising Interest Rates
When the Fed started to tighten monetary policy in several steps, bonds sold off and the stock market slumped by more than 50% from a peak in 1937 through March of 1938. Bridgewater wrote, this is absolutely nuts. Stock markets correct. We can't stop corrections. It happens. Human nature is such. It pushes things way, way up, fear pushes things way down. Ray Dalio: There's always downturns, there's upturns and there's downturns. The short term debt cycles add up to a long term debt cycle because we prefer stimulation over restraint.
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