Excess Returns · Thursday, August 6, 2026
Chan Yang discusses the concept of 'building headwinds versus tailwinds' in analyzing leading indicators. Headwinds include restrictive monetary policy, high interest rates, inflation, and geopolitical tensions, while tailwinds encompass technological innovation, strong consumer demand, and fiscal stimulus.
“Yeah, so, you know, when we look at leading indicators, it's obvious that, you know, we have to think about the things that are going to be drivers of future growth, but also the things that are going to be detractors.”
“So, you know, when we think about headwinds, it's obviously things like, you know, restrictive monetary policy, higher interest rates, um, inflation, right? Also geopolitical tensions.”
“And on the flip side, when we think about tailwinds, it's obviously things like, you know, technological innovation, um, strong consumer demand, um, fiscal stimulus.”