Politics, There Is Money To Be Made Going Against The Market

Discussion in 'Politics Discussion' started by longtermbull, Jun 27, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

    Nov 2016
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    As an exit poll in the UK shows that Conservative support has crumbled in the last few days this begs the question, is there money to made going against stock markets? We have never been in a more volatile political period than the current decade with previously dominant governments collapsing all around the world. Indeed, who would have guessed that Donald Trump would be president of the USA in 2017?

    Market expectations

    If we take the UK as an example, markets were fully expecting a Conservative win with an enlarged majority. This was taken for granted by the bookies, investors and analysts who were all pricing in a larger than ever Conservative majority in the House of Commons. There is therefore an argument that because markets were taking this “for granted” there was more potential downside than there was upside. Make sense?

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