A broken window
Didier Darcet
19 February 2019

The Broken Window Fallacy

Our TrackMacro AI program closed 2018 highlighting the continuous deterioration of macro fundamentals across the board. January 2019, however, proved that the cautious stance adopted by the system was deeply wrong, with global equities rebounding circa +7%. This is an explicit opportunity loss. What does the economic theory say about opportunity cost? And what does it not say?