Political Trends and the Market

  • Conservative won in Australia on Saturday.
  • The new Brexit Party (1 month old) is poised to dominate Thursday’s U.K. voting.
  • Macron’s popularity is at an all-time low in France with Le Pen and Eurosceptics poised to take over.
  • Eurosceptics are already in power in Italy.
  • Right of Center now in control in Brazil.

The trend is clearly away from globalism to independence and greater accountability self-reliance demands.

The U.K., voting to leave the EU in June 2016, started the shift and set the table for Trump’s election. His leadership and success strengthening the U. S. Economy is accelerating it.

The shift to independence (away from central control of EU) will yield much more targeted trade agreements and greater sensitivity for competitiveness and performance; resulting in more efficient value creation. Collectively these factors create the high transparency supporting intelligent risk driving sustainable growth.

Sentiment for the end of globalism is ringing out loud and clear. Prosperity through independence. Stability and security through competitive trade agreements serving national interests first.

Canada, Mexico, Japan, South Korea, and Saudi Arabia have adjusted their trade agreements with the U.S. The U.K. and EU members are anxious to do the same.

The unknown is timing. However the trend is strong for intelligent risk and sustainable growth. Trump 2020 is a lock when policy and outcomes are compared to the trajectory of alternatives. China cannot wait 2 years any more than it can wait 6 or 14 years for a compliant president to secure trade with the U.S.

Investors enjoy much more certainty of achieving desired outcomes than elected officials going against the empowerment of the electorate. Leadership in Congress, slow walking and poison pilling legislation with unanimous bipartisan support coming out of Committee, are committing political suicide. It is telling that the Aligned Media isn’t asking why.