austrian economics

Austrian economics does more than tell you what happens when the government disturbs market forces. In the hands of knowledgeable investors and entrepreneurs, it can tell you exactly what to expect from the market. Market behavior depends on how people behave. And how people behave is central to the Austrian perspective.

The stock market hovers around all-time highs, and right on cue, individual investors are starting to get back into stocks. They are tired of earning nothing in money market funds or bank CDs. Ben Bernanke’s zero rate siren song has enticed reticent investors ashore all in the name of stimulating the economy and putting people …