Deflationary environment, consumption is king. Prices fall, your money becomes increasingly valuable, so buying is earning.
Inflationary environment, investment is smart. Currency depreciates, assets appreciate, convert money into things that gain value.
Saturated race track, consume don't invest. Everyone is desperately cutting prices to fight for market share, so enjoy the low-price dividend, don't enter and become a sucker.
Bubble race track, make money don't go down with the ship. There's markup in bubbles, but remember: you're here to arbitrage, not to perish. Exit before the bubble bursts, that's what experts do.
Core logic is simple: spend money where it's cheap, cash out where it's expensive.
Remember: making bubble money ≠ making money in a bubble. The former is a sniper, the latter is a gambler.
Timing matters more than effort, awareness is worth more than diligence.
Smart People's Four Quadrant Rule
Deflationary environment, consumption is king. Prices fall, your money becomes increasingly valuable, so buying is earning.
Inflationary environment, investment is smart. Currency depreciates, assets appreciate, convert money into things that gain value.
Saturated race track, consume don't invest. Everyone is desperately cutting prices to fight for market share, so enjoy the low-price dividend, don't enter and become a sucker.
Bubble race track, make money don't go down with the ship. There's markup in bubbles, but remember: you're here to arbitrage, not to perish. Exit before the bubble bursts, that's what experts do.
Core logic is simple: spend money where it's cheap, cash out where it's expensive.
Remember: making bubble money ≠ making money in a bubble. The former is a sniper, the latter is a gambler.
Timing matters more than effort, awareness is worth more than diligence.