Peter Navarro teaches business management. He is also a prolific author on the interface between macroeconomics and stocks. Professor Navarro has rendered testimony before the U.S. House Ways and Means Trade Subcommittee.
Professor Navarro has coined the phrase ‘master cyclist’. The concept relates to the productive use of cutting-edge forecasting technologies. Corporations that systematically predict future market conditions adapt strategies and operations in appropriate ways. This keeps them ahead during upswings, and better prepared for recessions as well.
Stock investors should be master cyclists as well. There are two dimensions to applying environment scans to the world of a stock exchange. One is to support stocks of companies that hone master cycling skills. The other is to balance each stock portfolio such that at least one set of stocks continue to appreciate and to provide growing dividends, regardless of the general state of the economy. Information has driven stock investing until now. It will continue to do so, but we need new skills to include more data, and to process it better as well.
Master cycling will gain popularity in a technology-led global world. The stock investing approaches of the closeted markets of the past may not ever work again. Even when bulls charge in future, they could be attracted by entirely new sets of stocks. Stock markets, of which we had never heard before, may become compulsory trading rings tomorrow. Uncertainty is the only certainty. He or she who balances best wins.
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