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The Markets are Psychological and Emotional – prepare for change!

November 1, 2012

A Romney win on November 6 will likely CHANGE the ‘psychology’ of the global markets…Watch for significant Change in the Global Markets going forward!

The stock, bond, and commodities markets mostly move based on changes in ‘psychology’. If Romney and Ryan win on Tuesday, get ready for a major change in the psychology of the markets. Euphoria may last for a few days, but reality will set in when traders and investors become aware of this CHANGE. The mindset of a new Administration could change to a ‘problem’ solving mindset. And if some of our ‘problems’ get addressed in a meaningful manner, this could move all the world markets to the downside. Think about a CHANGE in psychology (affecting the markets) as we move forward into 2013.

 
Today, all our financial markets are mostly emotional and psychological. This factor is a result of the type of ‘money’ that we now distribute around our planet. Money has evolved into a psychological unit (a no thing unit) which is now created ‘out of nothing’…the consciousness of Central Bankers and their committees. This factor means that a change in the perceived Authority of a Nation (such as that in the United States of America) can create New emotions and thinking within the investment and traders mindset. Will the coming CHANGE in Authority of America (my assumption)  create completely new thinking and decisions within Wall Street and the Global Financial Community? Personally, I think this is likely (assuming a Romney Win)!
 
 
Even if there is No change in leadership on November 6, a new Obama Administration will also lead to major changes in decision-making. Our President (assuming Obama wins) will likely change his psychology on many issues (especially our financial issues). We could witness a completely new mindset within the new Administration even if Obama wins on Tuesday. If Romney wins, I personally think that a ‘problem’ solving mindset will develop within this New Administration. And this mindset will set in motion serious consequences for those who expect the status quo going forward. The Status Quo can not be maintained as we move into 2013 and beyond.
 
 Following are just a few problems that must be dealt with as we move into 2013 and beyond. Think about the psychological factors which emerge from dealing with these issues:
 
1. Our DEBT CEILING will become a major issue by inauguration day on January 20, 2013. Our public and intra-governmental debt is now over $16,000,000,000,000 (see www.usdebtclock.org). This debt is basically unpayable given that our tax revenues are declining and government spending is growing. The GAP has reached levels which suggest that government must reduce its SIZE substantially in future years. This AWARENESS will most likely emerge…assuming a Romney win on Tuesday.
 

2. Who will follow our current Fed Chairman if Mitt Romney wins on Tuesday? Will Ben Bernanke and his official ‘counterfeiting’ (called QE to infinity) be allowed to continue? Will Ben step down to allow for a new Romney Fed Chairman? Personally, I think this is likely. This factor could create a major change in the psychology of the markets (nationally and globally). This change could be monumental for all our stock and bond markets as it is the policies of Ben and his Committee which has allowed unnatural policies to continue. A new Fed Chairman is likely to initiate completely NEW policies and initiatives.
 
 
3. Will the Fiscal Cliff be solved with either a Romney or a new Obama Administration? Personally, I don’t think so! The loggerheads between our political parties is likely to continue in 2013 and beyond. This factor will also create major psychological changes in the mindset of traders, investors, lenders, savers, and the general public. These psychological changes will most likely affect the markets negatively. If Ben is removed or if he steps down voluntarily, this factor along with our fiscal cliff could be monumental. Change is coming!
 

Watch the Markets at any of these websites to discern future trends:  www.321gold.com, www.howestreet.com, www.financialsense.com.  
 
The Status Quo can not continue into 2013. Romney is likely to win on Tuesday but if a surprise occurs and Obama wins, serious change will be forced upon the new Administration and the Markets. At some point our ‘problems’ must be addressed in a serious manner. What we now need globally are people who desire to be PROBLEM SOLVERS ! Dealing with Problems, however, does create serious psychological and emotional changes in all markets!

 
 
 
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