Political Polarization is here to stay (at least for a while)
This is the primary emotion being used to manipulate the masses; we first addressed this emotion after the Trump Victory. Top players employ polarization to divide and conquer the masses. And its working marvellously.
This trend is gaining momentum, and the recent victory in Austria and New Zealand has now validated that this trend is set to last 12-15 years. Europe will eventually appoint a leader that will make Trump appear docile in comparison. This Trend will have a huge impact on the markets. A polarised person is much easier to control and manipulate than one who has no emotional attachment to a given outcome. Hence, the more polarised the crowd becomes, the more volatile the market action will become, though the volatility will be manifested strongly in the direction of the trend. For example, as the trend is up, most of the volatile action will occur towards the upside.
Political Polarisation is disease that’s gathering Momentum
We also stated several years ago that Asia (heralded by China) and many parts of Eastern Europe (heralded by Russia) would move closer towards democracy while the West moved closer towards dictatorship. Therefore while Western Europe and America will be infected with the “Polarisation disease”, it will have a minimal impact on the populace of Asia and Eastern Europe
Main emotion powering the markets
The main emotion powering the markets is insanity. Not everyone invests in the markets. If you look at how much this stock market has risen from its lows in 2008, it immediately becomes obvious that something is out of sync. The higher the market rises, the more fearful the crowd becomes; only one word can describe such a state “insanity”; more on this in future updates.
Other Articles of Interest
Bull-Bear Markets & Arrogance (Jan 1)
Will The Stock Market Crash In 2018 (Dec 11)
Has US Dollar Finally Hit Bottom (Dec 6)