Part 2/9:
Pal emphasizes the importance of building an economic framework rooted in various analytical disciplines—ranging from the business cycle and technical analysis to fundamental economic analysis. The crux of his strategy is not to get bogged down by the present but to evaluate the future's probabilistic outcomes based on current facts and trends.
The Macro Investing Landscape
Investors often miss the mark by anchoring their views solely in the present. Pal advocates for a broader perspective, where you evaluate the state of the world six to twelve months ahead—or even a decade in terms of big secular trends. He uses India as an example, where despite current bureaucratic challenges, the country’s promising demographics and technological advancements indicate a bright future.