“Follow the money” is especially relevant in today’s economy. When evaluating a company, look beyond the headline numbers and understand where its revenue ultimately comes from.
Businesses that rely heavily on discretionary retail spending may face greater pressure when consumers become cautious. By contrast, companies with meaningful exposure to government contracts, defense spending, infrastructure programs, or sovereign customers may benefit from more durable sources of demand.
During periods of economic uncertainty, governments often use fiscal spending and investment to support economic activity. From an investment perspective, the key is identifying where capital is flowing—and which companies are positioned to capture that spending.
Follow the money, understand the customer, and understand who ultimately funds the growth