We are now a socialist country
While many factors affect the stock market, my primary concern is the nincompoop in the White House. He makes pronouncements that are off the wall, he runs the country on fear, he does not allow independent thinking, he is a socialist.
Why do I say this? There are two types of socialists, communal and nationalist. I’m not going to go into the history and derivation of each type, but from my viewpoint they ended up at the same place. A few men, who due to timing, some ability and mostly luck, think they can outperform everyone else. You find these elitists in all authoritarian governments and in some democracies.
They destroy capitalism and democracy by dictating what they want and forcing their will on both individuals, companies and organizations. They think they know best and will destroy anyone and everything that gets in their way.
So what does this lead to? Fear of trying things. Fear of innovation. The mindset is always CYA, Cover Your Ass.
Unfortunately, this situation is effecting a vast majority of countries. The US, China, Russia, India, various countries in Europe and Latin America are all in the same boat. It’s almost like we are entering a new Dark Age. Too much governance by “gut feelings” little governance by science and knowledge.
So where does this leave us. Fluctuating markets moving with little rhyme or reason. Broken alliances, nationalistic pride and most likely destructive wars. Once again, gold makes the most sense as an investment, but remember gold doesn’t make anything, it’s just a place to store wealth.