With my poker background, the current economic situation in North America strongly reminds me of what happens from time to time to nearly every competent poker player who starts out playing a solid game and winning, usually with some good luck along the way, then becomes overconfident and turns to playing more and more hands until the whole strategy goes out of whack. Then, once the luck changes, the losses start mounting.
When I talk to people, a lot of them seem to be confused about what’s been happening recently with the US stock market (and, consequently, with the Canadian stocks, since we are so tied up with each other). The unemployment is at the record low, the GDP is growing, then how can the stock market be falling during such a “roaring” economy? In this blog post I will try to explain what’s going on in really simple terms for those who do not have a background in economics. Of course, this is a huge topic, so I will just be focusing on a few of the factors in play.