Send this article to a friend:

July
20
2018

Will Politics Decide The Future of The Financial Markets?
Chris Marcus

Does it ever feel like the financial markets have become heavily intertwined with the current political arena? Where in many cases natural supply and demand have become irrelevant, and instead asset prices often revolve around the latest gossip about potential Fed or government actions.

Unfortunately today’s markets have evolved to the point where the latest political decree can significantly impact what happens. And along those lines, there’s been ample speculation that the powers that be may be planning a financial reset. With many feeling that gold and silver will be reset higher, while perhaps much of the global debt is somehow cancelled out (keep in mind U.S. president Donald Trump does have extensive experience with the bankruptcy code).

So while you could look at all of the factors one might rationally consider in regards to the profile of an asset, amazingly they can often all be wiped out by a Fed or political action at any given time. And with the stunning underlying developments that are taking place at a rapidly accelerating pace, the probability that some sort of market shifting event arrives soon is rapidly increasing.

Which creates an environment where you may well be right that a company is going to post better than expected earnings. But because the market moves so significantly on a macro level, it just won’t matter.

One of my primary memories from trading equity options on the American Stock Exchange in 2007 and 2008 as the market was collapsing, was how on many days the market was somewhat stable until around 3 p.m. After which the major indices would rise or fall by 2-4% on an almost daily basis. Often it felt like the first 5 and a half hours of the trading day just essentially meant nothing.

Which is similar to why understanding what’s developing at this very moment has never been more important.

I do believe the system was close to completely collapsing in 2008, until the government and Federal Reserve guaranteed a lot of the assets. Which certainly is something they may attempt to do this time around as well. How this all plays out (whether there is a political reset, or if eventually natural market forces reset prices on their own) will be one of the most truly fascinating events in the history of finance.

If Deutsche Bank fails and creates a cascade of defaults, what will the governments do? No one outside of those directly involved really knows for sure. Although my best guess is that truly shocking amounts of money will be printed and guaranteed.

However I believe it will be more difficult this time around for the banks to get away with some of the tricks they pulled off a decade ago. As a lot more is known and has been exposed about how the game really works, and the public sentiment for more banking bailouts is seemingly low.

Yet in either case, the actions and interest rate policies of the Fed, as well as the political developments will provide fascinating insight into the monumental shift that’s occurring.

Perhaps there’s never been a time where the markets have been more influenced by politics than now. Or maybe this is just the latest form of how it’s always worked behind the scenes.

However, the good news is that regardless of how the theater plays out, because the can has been kicked so far down the road, any government or Fed action at this point will likely only strengthen the case for gold and silver.

–Chris Marcus

To buy or sell gold and silver call Miles Franklin today at (1-800-822-8080).

When the housing bubble burst back in 2008 I was still trading equity options on the American Stock Exchange.

At the time I was stunned, and found it odd how almost no one had seen it coming.

Yet when I started reading about the investors who had forecast the crisis and positioned their money in advance, it changed my life forever.

So after 11 years on Wall Street I walked out and left.

To share what I would want my mother or a friend to know about what’s coming next. Before it’s too late. 

I believe we’re on the verge of a spectacular period of financial history.

Governments and central banks have inflated historic bubbles in the stock, bond, and real estate markets. When they burst, it’s quite likely the crash will be even more severe that what we all lived through in 2008.

Although that doesn’t mean you can’t be positioned to protect or even grow your wealth during this coming period of change.

Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening.

How to protect and grow your money. And how to turn what will be a crisis on Wall Street into an incredible source of opportunity for you and the people you care about.

My background includes 2 years at bond rating agency Moody’s, an MBA from Wharton, and 7 years as an equity options trader for Susquehanna International Group on the American and New York Stock Exchanges.

I’ve written for GoldMoney.com, EuroPacific Capital, Casey Research, Safe Haven, and others, and I created this Arcadia Economics site to help people like you understand how to respond with positive action.

If you have questions and feel like you could use some help I always look forward to hearing from you. 

Sincerely,

Chris Marcus

www.milesfranklin.com