The Stock Market: Hostage to Politicians?

Part of the trouble with investing in the current environment is that the entire stock market is now hostage to the politicians. Investors buy or sell stocks based on the anticipation and implementation of new bail outs, spending plans, and other money-printing schemes.

This makes for a very difficult investment environment, since politicians are inherently fickle, corrupt, and too conciliatory. A good politician strives to satisfy the majority, a trait that is destructive in business, where the aim is profits irregardless of what the majority will think.

With politicians interfering more and more into the economy, it is therefore inevitable that business in general will deteriorate and stocks will become even more volatile, with sharp rises and equally dramatic drops.

There is simply no way to invest intelligently in a government-controlled economy.