Confusing US economic data along with Trump’s statement on reviving “Trade Wars” and Italian election results, they have all together driven markets into a “wait and see” trend.
This particular trend is actually based on a feeling many people have. But, they are afraid to show it. Those, who can muster some courage, do not hesitate to ask, “Storm’s coming. Can you feel it?” So, I ask in return, “How come?” “We don’t know why but that’s how we feel” they mostly say. There are many domestic and foreign investors who get the same feeling. The truth is I keep hearing more and more people saying that a big storm is coming.
But, based on what data do they make these claims? Honestly, they don’t have an answer for that. . They just say, “My gut instinct tells me something’s not right”. This is actually making me wonder, prompting me to figure out the reason why highly-experienced investors can get such feelings.
“One thing led to another…”
When I think about why they could have a feeling of a big storm is coming our way, I realize that they are face to face with completely different economic scenery than they were used to deal with for the past 20 to 30 years. But, I must add that the negative vibes that are spreading around by those who have handed over their factories, squeezed by urban sprawl, to mass housing project contractors, or who have lost their jobs to robots with the rapid emergence of artificial intelligence, those who were once wealthy but cannot even make the most wealthy families list now, and all people who witness these sorrows and pain, also play a part in making the situation even worse.
Leading unhappy and unfulfilled social lives as well contribute into the shaping of these negative thoughts. But, we must keep our eyes open when there are so much negative thoughts around.
Interest rates, trade wars, exchange rates, digitalization… Maybe none of these, individually, is the main problem… Maybe they all combined together create a big mess. I don’t know… The only thing I know is that there is an unrest disturbing us all that we cannot quite put a name on it.