Understanding the phases of the economic cycle—expansion, peak, contraction, and trough—is vital. Different asset classes perform better at different stages of the cycle (e.g., stocks during expansion, gold during contraction). Practice: How Global Macro Hedge Funds Operate

AI responses may include mistakes. For financial advice, consult a professional. Learn more

Predicting price movements in oil, gold, and agricultural products based on supply and demand.

This includes concepts like and Interest Rate Parity . These theories help traders understand where exchange rates "should" be in the long run. 2. Behavioral Finance

Assessing how elections, wars, or trade agreements impact market stability. Theory: The Foundation of Global Macro