I earned an MA in economics from the
However, a few years ago I began learning a theory of business cycles that was new to me. It’s popularly known as the Austrian business cycle theory, or ABCT. Economists over the past two and a half centuries have refined the theory since Richard Cantillon first discussed the basics in the 1720’s. At one point they knew it as the
The role that profits play in Hayek’s version of the theory helped me connect it to the stock market. A very simplified version states that high profits for the cycle indicate an approaching cycle top. Profits also determine stock market cycles. I saw that the Austrian business cycle and monetary theories could be useful tools for guiding investment in stock and bond markets.
I explain in detail the business cycle theory and how it relates to investing in a little book I titled “Financial Bull Riding,” which a well-known publisher is considering offering as an E-book. When it’s available I’ll put the link to it on this site. I’ll use this site to apply some of the principles of Austrian economics to investing and discuss other things I have learned about investing.