Political Polarization is now the Order of the Day; next target Financial Markets
You must have noticed by now how polarised the entire world is over the Trump presidency? What we stated has come to pass with alarming swiftness, and it is only going to get worse, but that is a story for another day, or perhaps we will delve into later on in this issue. For now, what you need to understand is polarisation is the perfect breeding ground for insanity. Insanity thrives under such conditions, and many individuals will be trapped in an illusory world that for all intents and purposes will appear real to them.
Try to tell them otherwise, and you risk being shot at; remember perceptions are everything. What a person perceives to be the truth is the truth regardless of whether it is the truth or a blatant lie. Therefore never argue with a fanatic, just say the following “okay, I see your point and thanks for providing me with a new perspective” and take your leave. If we are going to practise what we preach, then we need to walk the walk and not just talk the talk. This market is in an insane mode.
Political Polarization is here to stay; It is pointless to fight the trend
Therefore we are not going to argue with it, not on squeak from us. We are not going to pen another thousand words telling you why it should crash or soar or anything like that. The bottom line is the market does not care about what if scenarios? What if scenarios are for people that have too much time on their hands to talk about useless concepts that most likely will not come to pass. Let’s deal with reality
The first thing that caught our eye is that V readings dropped once again and the drop was quite significant. This is the first time in many years that this index has experienced back to back drops. The current reading stands 5390, a drop of 150 points. Could this mark the beginning of a new trend; it is too early to tell. If this is a new trend, then we can expect less violence in the world, somewhat normal weather patterns and less volatility in the markets.
Wilder’s did not win in the Netherlands so has the Alt-right movement lost its momentum? We use the word Alt-right, etc. so that our readers have a focal point. Otherwise, we would have to explain what we meant each time we discussed this topic. This is the phrase the press and mass media has coined, but what we find interesting is that there is no such thing as Far-left, Alt-left, etc.; clearly there are some lefties that are so deep into the left zone that they might not even understand what taking a position to the left means anymore. Maybe a new term might have to be invented; insane seems as good a name as any, and many on the right will soon fall under this category too in the months to come.
The Alt-right has not lost its momentum, what the mainstream media failed to mention was that Mark Rutte suddenly decided to take an aggressive stance towards Turkey and this helped him gain momentum at the last minute. Bottom line, he took a page out of the Alt-right book and thus managed to win. What will start happening is individuals that were sitting in the middle will start leaning towards the right, and this could help some of them hold onto their seats of power. However, they will have to implement what they promised, or they will be hung.
The markets are trading in the extremely overbought ranges, and everything we stated so far has come to pass. We predicted the markets would soar after a Trump win much the same way we stated that they would soar after the Brexit Vote. We issued targets of Dow 21,000 in Dec 2016, and these targets have been hit. Thus, at this point, the prudent thing to do is to maintain tight stops and hold your powder dry as the markets are looking for an excuse to let out some steam. The next correction is likely to be stronger in nature as the markets have not let out a healthy dose of steam for awhile and will make for a great long-term buying opportunity.
Random thoughts from the Tactical Investor
If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who strive to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.
Mass psychology is a very powerful tool, and if employed correctly can help you spot the abnormal levels of manipulation, the masses are subjected to. It would be a good idea to familiarise yourself with the concept of “ Plato’s allegory of the cave.”
We demonstrate how individuals can use Mass psychology to their advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being. Hop over to the investing for dummies section of our website; it contains a plethora of free resources and covers the most important aspects of mass psychology.
Consider subscribing to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you do not alter your perspective and change your mindset. If you cling to the mass mentality, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.
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