About Us
Genesis
Pendulum Capital Investment Strategies is to be an equity research and investment platform, an expanse that produces insights on the global macroeconomic landscape and the investment world, ultimately seeking opportunities through them in an increasingly complex world.
Society is oftentimes ruled by trends, a fact that is designed by nature. As inherently emotional and social creatures, we are pulled to the conventional and oppose idiosyncrasies. We are drawn to be liked by others and thus follow orthodox values set by the majority. At the same time, we are logical. If we sense abnormalities, our brain senses the inane and attempts to resist this sheep mindset. These two fundamental processes create a repeating pattern and, ultimately a cycle, one that we hope to take advantage of in financial markets
Cycles govern the world
Cycles existed since the beginning of time. We see it in the fundamental existence of our world. The earth cycles around the sun in 365.2 days, creating the solar year, constituting a basis for timekeeping for humans. Using years as a reference of time, we can see some cycles that happen throughout thousands, hundreds, and tens of years. Ice ages appear every 41,000 years, gradually lengthening to 100,000 years, coined the Milankovich cycle. On a more relevant scale, the moon’s rotation around the Earth constitutes a moon cycle or a month. The earth’s rotation around its own axis generates a day.
The creation and usage of this simple framework reflect not only our scientific ability to discover these fascinations but also our comfortability in relying on an organized interval that constantly repeats itself. And if we look deeper, it seems to be that our comfortability derives from a larger underlying force than just convenience.
Cycles affect us at different levels of consciousness. A convenient example is the changes in the climate. In one year, the weather usually turns hotter and humid during summer and colder and drier during the winter. However, these cycles in climate can indirectly shape our subconscious mind and physical status. Lower exposure to sunlight during winter seasons leads to habitual changes in the mental state in us humans. Serotonin levels drop, causing reduced activity and a general sense of glum.
The day cycle makes another suitable case in point. We often colloquially refer to the internal clock when we miss our sleep schedule or experience jetlag. This uneasiness is evidence of the human body's inherent tendency to maintain a pattern, the circadian rhythm. Though commonly referred to as a function of humans, this also exists universally in nature.
Finding patterns is finding opportunity
As cycles govern the world around us, we should find ways to identify if there is a cycle, what the cycle is, and which part of the cycle we are in. This extends from economic cycles into sector-wide cycles, into company-specific cycles and beyond. Through this, we can identify and position ourselves well to be an extensive beneficiary of each movement.