Hudson's Investment Methodology
The Economic Cycle
The Hudson investment methodology is built around
the economic cycle. Although general in nature, the
economic cycle functions as a guide to the pattern
of economic and psychological forces that fuel investment
activity.
The actual duration of an economic cycle is dependent
upon numerous economic, political, fiscal, consumer,
business and international factors. While it’s
impossible to forecast the actual duration of an
economic cycle, or when it will start or finish,
the economic cycle is a useful depiction of the consistent
patterns of movement that affect investment.
It’s important to realise that the boundaries
of the various stages of the economic cycle are often
quite blurry. In fact, it’s possible for two
or more of the stages to run simultaneously.
Nevertheless, an appreciation of the economic cycle
may help you to better understand the Hudson Matrix
and, in turn, the strategies that you may choose
to focus on in building your wealth.
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