How We Do It

"These are unique times. And we do unique economics."
Donald Luskin
Chief Investment Officer

Most economics is pseudo-science -- it sounds impressive, but it has no relevance to the real world of investment decision-making. It’s based on obsolete or fallacious theories that have no predictive power, and driven by useless backward-looking data. No wonder Wall Street gives investors its economics research for free. Even that is over-priced.

Our kind of economics is different. It’s based on identifying and understanding the changes in the environment that motivate changes in human behavior. Because it’s those changes that determine growth, inflation and all the other macroeconomic variables that move markets.

Clients don’t find us wasting our time (or theirs) doing unnecessary surgery on stale historical statistics. Instead we create proprietary insights that uncover the real cause-and-effect linkages between human action and the economy.

Then we take the next step -- which typical Wall Street economists rarely do at all, and never do well: we connect our economic insights to actionable ideas in markets.