MarketMap 2018 Issue #1

Posted by on Feb 2, 2018 in Geopolitical Risk, Market Advisory, Market Map, Newsletter, Volatility | 0 comments

Financial crises are not random events

As recent as 2016 major pessimistic headlines have bombarded the public. Such media spin on the financial markets keeps a lid on public participation. Especially that segment of the populace that feels disenfranchised from owning stocks.

However, the negative headlines all changed on November 8, 2016, coincidental with the surprise Trump election. Since that date, the market outlook has changed from one of gridlock, which the market liked as it meant nothing gets done and Wall Street liked the status quo. Now with a laissez-faire President that will sign anything the Republican majority want for fiscal policy, well Wall Street is in love.

However, the initiated knows this has precedents and bear markets are something expected every several years, especially in this era of deregulated markets and corporatocracy.

The initiated knows, most boom and busts, if not all, that have plagued the American economy were generated by government creating a boom through easy excessive fiscal or monetary policy, which was soon followed by the inevitable bust, i.e., the inevitable taking of profits.

Media and Market Sentiment

The gaggle of Wall Street employees who …

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