Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
If You Don’t Understand Bonds, You Don’t Understand Investing - 25th Aug 19
Gold's Next Move - 25th Aug 19
Fresh Water Crisis Unfolding - 25th Aug 19
Newbie Guide to Currency Pairs in Forex Trading – Review - 25th Aug 19
When A 16-Year-Old Earns $3 Million, You Know It's Not A 'Silly Fad' - 24th Aug 19
The Central Bank Time Machine - 23rd Aug 19
Stock Market August Breakdown Prediction and Analysis - 23rd Aug 19
U.S. To “Drown The World” In Oil - 23rd Aug 19
Modern Monetary Theory Could Destroy America - 23rd Aug 19
Seven Key Words That Explain "Stupidly High" Bond Market Prices - 23rd Aug 19
Is the Fed Too Late Prevent A US Housing Bear Market? - 23rd Aug 19
Manchester Airport FREE Drop Off Area Service at JetParks 1 - Video - 23rd Aug 19
Gold Price Trend Validation - 22nd Aug 19
Economist Lays Out the Next Step to Wonderland for the Fed - 22nd Aug 19
GCSE Exam Results Day Shock! How to Get 9 A*'s Grade 9's in England and Maths - 22nd Aug 19
KEY WEEK FOR US MARKETS, GOLD, AND OIL - Audio Analysis - 22nd Aug 19
USD/JPY, USD/CHF, GBP/USD Currency Pairs to Watch Prior to FOMC Minutes and Jackson Hole - 22nd Aug 19
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Trump Win and Brexit - What the Two Biggest Events of 2016 Are All About

Stock-Markets / Financial Markets 2016 Nov 10, 2016 - 09:10 AM GMT

By: Harry_Dent

Stock-Markets

Like Brexit, Trump staged a surprising win last night, proving every poll wrong.

This is a sign of an underlying trend more massive than the winter economic season that began in 2008. It’s clear evidence of the end of globalization (at least for now). And that’s an important point to take away from the election… and from Brexit.

People are angry. They’re discontent. They’re sick and tired of how small the world has become and they’re ready to revolt. This brings us to the heart of my 250-Year Revolution Cycle.


The very success of globalization, which has flourished since World War II, has taken us to the point where it’s put very different factions at each other’s throats (I’m talking globally AND locally).

It’s become a case of domestic workers versus foreign workers and immigrants… the affluent versus the middle class and poor… Sunni versus Shia and other religious divides… the young versus the rapidly growing burdens of the aging… and big government versus individual freedom…

And, most potent in the U.S., the red versus the blue states!

Our political divide today is the worst it’s been since the Civil War… and I see no way for compromise anymore. We’re beyond it. We’re quite literally at the end of our tether.

This goes beyond the extreme income and wealth inequality today that we also saw in the late 1920s on my 80-year economic cycle. It’s about extreme social and political divides, again more like the Civil War era.

No better graph sums up globalization than this one.

Technological waves have made the world more global with each passing, and they run in 500-year and 45-year cycles.

Mega-innovations, like tall sailing ships, the printing press and gunpowder, started the globalization trend just over 500 years ago, but slowly at first, like any S-Curve. The 500-year cycle of inflation, urbanization and demographic progress that started in the very late 1800s is not due to peak until around 2145. That strongly suggests there IS one more wave of globalization that will bring the entire world into urban and middle class living standards – but it won’t happen until we regress and realign countries and regions around cultural and political lines that are more humanly acceptable and sustainable.

Steamships on the 45-year cycle ignited the first accelerated wave of globalization starting in the early 1850s, and railroads extended that. But that came to an abrupt end with World War I, when globalization retreated dramatically through the Great Depression and World War II.

Then jet travel, followed by the Internet, facilitated an even steeper, second globalization boom from 1946 into 2008.

The Greek bailouts were the first shot across the bow of the second surge in global interconnectedness, and the Eurozone’s huge disparities in income and competitiveness have threatened to tear it apart ever since. The demise and/or a major restructuring of the euro and Eurozone is inevitable in the years ahead.

And again, two of the biggest events of this year prove it. Our election… and Brexit.

Brexit happened against the polls, in large part, because of the migrant crisis tipping the British towards protection of its borders. Sounds a lot like Trump’s wall and deportation threats, doesn’t it?

And the Scottish and the Catalonians in Spain may be next to exit. Italy and other countries may have to exit the euro when they don’t receive the bailouts Greece did. And then Quebec could finally exit from Canada, and so on. 

From all the evidence popping up the world over, I call this second great globalization boom over. We’ll see separatist, trade protectionist and anti-immigrant policies around the world adopted at alarming rates. Walls and fences on national borders have already been going up exponentially since 2000. We’ll see many more Brexits, including in the U.S. (a “rednexit” because the red states have made their voices heard). Countries and regions are going to have to realign around common ethnic, religious, political and financial roots before globalization can advance again.

This is bigger than the bubble burst ahead, or even the second half of the winter economic season we’re struggling through. This is likely to take decades, not years.

And the U.S. has one of the most deeply divided populations. Today we’re nearly as divided as we were before the Civil War! That’s why I’ve dedicated the November issue of The Leading Edge to this topic. It’s going to have massive impacts on your investing success and you need to adapt your investing strategies accordingly.

Even when we finally have the necessary financial crisis to deleverage our massive bubbles, the world will look very different coming into the next global boom. Investors and businesses will need to be more selective to find growth – and there will be very strong growth, but in areas like emerging markets, commodities and aging industries like nursing homes (not across the board, as we saw after 1932 or even 1982)!

Time to get ready.

- Harry

P.S. Despite Trump’s massive victory against the odds all the way, I predict one of two things for him: he will either be shot in his first year, or he will be a one-term president given the very adverse trends in the next three years. He definitely is not going to be the greatest job creator in history, no matter how hard he tries.

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2016 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules