Political Polarization: Impact on Financial Advisers
Updated July 30, 2023
We will employ historical context to illustrate how the trend we predicted has materialized and escalated over time.
By now, you’ve likely observed the intense polarization that has swept the world during the Trump presidency. What we predicted has unfolded swiftly, and it’s only expected to worsen. However, that’s a story for another time, perhaps one we’ll explore later in this issue. Right now, it’s crucial to recognize that polarization provides the ideal environment for madness to thrive. Insanity prospers in such conditions, and many individuals will find themselves ensnared in a fabricated reality that, to them, appears entirely genuine.
Attempting to convince them otherwise can be risky, as perceptions hold immense power. What one perceives as truth becomes their reality, whether it aligns with actual truth or constitutes a blatant falsehood. Consequently, it’s best to avoid arguments with fanatics. Instead, respond with something like, “I understand your perspective, and I appreciate the new viewpoint you’ve shared,” and gracefully disengage. If we intend to practice what we preach, actions must align with words. This market is currently exhibiting signs of irrationality.
Futile Resistance to Political Polarization
As a result, we won’t engage in arguments or provide lengthy analyses on whether it should rise or fall. The truth is, that the market remains indifferent to “what if” scenarios. Speculating about such scenarios is a pastime for those with excessive free time, discussing improbable concepts that are unlikely to materialize. Instead, let’s focus on dealing with the reality at hand.
One striking observation is the recurring drop in V readings, and this recent drop has been notably significant. It’s the first time in many years that this index has seen consecutive declines. Currently, the reading stands at 5390, marking a 150-point decrease. Whether this signals the onset of a new trend remains uncertain at this stage. If it does herald a new trend, we might anticipate reduced global violence, more typical weather patterns, and decreased market volatility.
Alt-Right Movement’s Momentum: The Dutch Election Perspective
Wilder’s defeat in the Netherlands has raised questions about the momentum of the Alt-right movement. We use the term “Alt-right” for clarity, as it has become a reference point for our readers. Otherwise, we would need to provide explanations every time we delve into this topic. Interestingly, there are no equivalent terms like “Far-left” or “Alt-left.” It’s apparent that some individuals on the left have ventured so deeply into the left spectrum that they may no longer grasp the essence of taking a left-leaning stance. Perhaps a new term needs to be coined, with “insane” being as fitting a name as any, as it might soon apply to many on the right in the coming months.
Contrary to what the mainstream media reported, the Alt-right has not lost its momentum. What they failed to mention was Mark Rutte’s sudden adoption of an aggressive stance toward Turkey, which significantly boosted his last-minute surge in popularity. In essence, he borrowed a tactic from the Alt-right playbook, contributing to his victory. What we may witness in the near future is individuals who were previously positioned in the centre shifting towards the right, potentially helping some of them retain their positions of power. However, they will be expected to follow through on their promises, or face consequences.
Conclusion
The markets are currently trading in extremely overbought territories, and everything we have previously discussed has unfolded as predicted. We foresaw that the markets would surge following Trump’s victory, much like they did after the Brexit vote. In December 2016, we set Dow 21,000 as a target, and we have indeed reached this target.
Given the current situation, it would be prudent to maintain tight stops and keep your resources available, as the markets seem poised for a potential correction. The next correction is likely to be more significant, as the markets have not experienced a substantial release of pressure for quite some time. This could present an excellent long-term buying opportunity.
Random Thoughts from the Tactical Investor
If you aspire to achieve freedom, your first objective should be attaining financial freedom. This will enable you to liberate yourself from the grasp of powerful individuals who seek to control you. They aim to keep you running in circles, much like a hamster on a spinning wheel. The hamster mistakenly believes that running faster will take it further, but, in reality, it’s making no progress.
Understanding mass psychology is a powerful tool. When used effectively, it can help you identify the abnormal levels of manipulation to which the masses are subjected. It would be wise to acquaint 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 them and direct them towards actions that could be detrimental to their 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.
Originally published on March 31, 2017, this content has been updated in July 2023.
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