Trump. Brexit. A rising tide of anger, violence, and political instability. Even “the market” has noticed, according to Liam Dann in the Business Herald:
It’s a mad, mad world
From Britain, to the US to Australia, voters are punishing politicians. Why the anger and what does it mean for markets?
The UK is in turmoil, Australia is in turmoil. Who is next? Donald Trump and the US elections are looming large. Then there is Italy, where Prime Minister Matteo Renzi has offered angry voters the chance to chuck him out with a referendum on political reform in October. And what about New Zealand – could we follow the trend?
“What we are seeing is a push back against, some would say, the whole post-World War II movement – globalisation and free trade,”
Mark Lister, head of research at Craigs Investment Partners, says “the Brexit was a wake-up call for politicians and investors and I think we’ll see plenty more of it.
“It’s simply a reflection of the fact so many people feel like they are missing out on their share of the boom.”
Inequality, poverty, the rise of the working poor – yeah, people are pissed.
We’re used to hearing this kind of thing from left-wing commentators and politicians. But neither Peacock nor Lister has a political axe to grind. Their analysis is matter-of-fact and born of concerns for investors.
Or in other words – the lefties have been right all along. But now Serious Market People can see it too. (Those poor damn investors – haven’t they suffered enough?)
“The low interest rate thing hasn’t really fired up economies or seen any wage growth come through,” Lister says. “All we’ve done is make house prices and share prices go up. The wealthy end of town feel wealthier, the bottom end and the middle end haven’t really benefited at all and people are just getting sick of it and are feeling very disenfranchised.” …
Reality, as the saying goes, has a well-known liberal bias. If only we didn’t have to bang our heads against a brick wall for quite so long to get the message through.