http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/ How Do Populist Leaders Help Stocks and Hurt Currencies? The so-called Trump bump stock rally is not unique. When populist leaders get elected across the globe the stock market in their country goes up. Later on, all too often, the local currency does not do so well in the Forex market. How do populist leaders help stocks and hurt currencies? For the first part we look at an article posted on Bloomberg Markets, populism is great for stock returns. If the last two decades of anti-establishment rule are any guide, the world may be on the brink of some monster stock rallies as it takes a turn toward populism. A look at 10 of the 21st century’s most recognized populist leaders shows that in the three years after their election, local equities soared an average of 155 percent in dollar terms. And the rallies often continued as long as a decade after the vote. This happens because populist leaders create a short term stimulus while running up their nation’s debt. Market performance under populist leaders is an issue front-and-center for investors as firebrand leaders who promise to put their people first go on the march from the U.S. to India to Turkey and the Philippines. Though economists say policies such as cracking down on imports, championing local industries and raising government spending will stifle growth in the long term, data compiled by Bloomberg shows that stock buyers can do quite well for years after a populist comes to office. But So Good in the Long Term The article notes that Lula da Silva in Brazil and Putin in Russia oversaw huge stock market rallies for up to ten years. The underlying problem in almost all of these situations is mounting debt coupled with questionable governance. Venezuela is a clear example of a country that paid off the supporters of the ruling party to the detriment of the economy and its currency.

1. How Do Populist Leaders Help
Stocks and Hurt Currencies?
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
The so-called Trump bump stock
rally is not unique.

3. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
When populist leaders get
elected across the globe the
stock market in their country goes
up.

4. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
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Before We Continue…

5. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Later on, all too often, the local
currency does not do so well in
the Forex market.

6. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
How do populist leaders help
stocks and hurt currencies?

7. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
For the first part we look at an
article posted on Bloomberg
Markets, populism is great for
stock returns.

8. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
If the last two decades of anti-
establishment rule are any guide,
the world may be on the brink of
some monster stock rallies as it
takes a turn toward populism.

9. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
A look at 10 of the 21st century’s
most recognized populist leaders
shows that in the three years
after their election, local equities
soared an average of 155
percent in dollar terms.

10. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
And the rallies often continued as
long as a decade after the vote.

11. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
This happens because populist
leaders create a short term
stimulus while running up their
nation’s debt.

12. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Market performance under
populist leaders is an issue front-
and-center for investors as
firebrand leaders who promise to
put their people first go on the
march from the U.S. to India to
Turkey and the Philippines.

13. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Though economists say policies
such as cracking down on
imports, championing local
industries and raising
government spending will stifle
growth in the long term

14. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
data compiled by Bloomberg
shows that stock buyers can do
quite well for years after a
populist comes to office.

15. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
But So Good in the
Long Term

16. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
The article notes that Lula da
Silva in Brazil and Putin in Russia
oversaw huge stock market
rallies for up to ten years.

17. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
The underlying problem in almost
all of these situations is mounting
debt coupled with questionable
governance.

18. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Venezuela is a clear example of a
country that paid off the
supporters of the ruling party to
the detriment of the economy and
its currency.

19. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Currency Devaluation

20. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
There are three reasons that
nations devalue their currencies.

21. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
The first, as practiced by Japan,
China, Taiwan and others is to
gain a competitive advantage in
trade buy exporting more and
importing less.

22. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
But populist leaders who buy the
support of their countrymen with
handouts run up huge debts and
in this case devaluation is done
to reduce sovereign debt
burdens.

23. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Investopedia writes
about currency devaluation.

24. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
A government may be
incentivized to encourage a weak
currency policy if it has a lot of
government issued sovereign
debt to service on a regular
basis.

25. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
If debt payments are fixed, a
weaker currency makes these
payments effectively less
expensive over time.

26. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
The problem when populist
leaders help stocks and hurt
currencies is when to invest and
when to get out.

27. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
Typically one will see two curves,
the rise of the value of stocks as
denominated in the local currency
and the fall in the local currency
in relation to the US dollar.

28. http://www.forexconspiracyreport.com/how-do-populist-leaders-help-stocks-and-hurt-currencies/
It would appear that investing in
stocks after a populist leader
takes office is a good idea and
getting out before their policies
ruin the currency is even better.