Life are cycles…and the economy?
A couple of months ago I stared at the Wave Theory Elliott. To Ralph Nelson Elliott (1871-1948) stock markets move in a pattern of waves. He divided theses in two kind of waves: impulsive waves (those that follow the main trend of the market) and corrective waves (those that go against the general trend). If we extrapolate this concept to the Spanish economy, we would see that some people in the real estate and construction in Spain know something about this theory, although I am sure with the Elliott´s name they would only remember the young guy from the E.T. movie. In fact, any businessman in any industry is aware that there are times when things are going well, and others where you have to prepare to endure the rain. Moreover, any person has gone through stages where everything goes smoothly and others in which it is better not to get out of bed.
As far as I know, the Spanish economy is still in trouble. However, I am drawing attention to some certain actor´s behaviour. Such as Bill Gates, who now cares for one of our strongest companies in the construction sector, Morgan Stanley winking at our economy making good predictions about it, Europe now tells us that we no longer need more funds to our banks, or export statistics of our business who encourage their export strength by emulating the best hidden german champions. Economy as life are cycles, what makes it difficult, is knowing when to change the trend and knowing how to get the better position. Are you ready to invest in Spain?
José Ángel Bocarando, Manager in Düsseldorf – Germany.