The stock market works both ways: Current events tell us about the stocks. But stocks also tell us about the world: What people are really doing. Not just what some wish they were doing.
And right now, the soaring markets in two of the larger countries in the world, India and Brazil, are screaming: “Our people want more freedom, less government. More opportunities, fewer guarantees. We’ve seen 50 years of schemes and dreams and complicated social planning that have done nothing but suffocate people yearning to grow. We‘ve had enough.”
Start with Brazil: Next month, Brazil hosts the World Cup. The country has had seven years to prepare, yet many of the facilities will not be finished by the time the world’s biggest sporting event begins. Brazil’s greatest hero, Pele, recently scorched the corruption and incompetence of the people who allowed this to happen.
The ruling clique’s desperate answer as it prepares for the upcoming elections? Crank up welfare benefits. Obama phones, anyone?
Take the ObamaCare rollout and the deceitful delays in Veterans Hospital care. Multiply them by 10 or 20 or even 100 and that is what much of the world has been laboring under. Dreams, then excuses when it all falls apart.
“Come on dude — that was, like, two years ago” is their mantra when confronted with their latest regular catastrophe.
But there is too much information today. The old lies don’t work anymore. If they ever really did. And in Brazil, most indicators say the people are ready to throw the rascals out. Just like they did in India.
They want what we in America have. Or had. And they know their Western-educated pseudo socialists cannot give it to them. They will have to get it for themselves.
That is why investors are flocking to India and Brazil and other emerging markets and leaving the United States. They are not necessarily saying the United States is bad. But that India and Brazil are better.
It is easy to say the recent landslide election of a new president in India will make all the difference. But that is the tail wagging the dog.
The fact is India is a country full of entrepreneurs ready to burst. Brazil is a nation of young people, ready to be unleashed. Ready for freedom.
Just the way the people in the United States used to be, remember? Before we had headlines like: “Record numbers of people on disability.” “Record numbers of unemployed people not looking for work.” And the Huffington Post wants a new employment law they are calling “menstrual leave.”
We now talk about American exceptionalism the way people in Brooklyn talk about the Dodgers: They were great, and coming back any day now.
In 1961, the prime minister of India, Jawaharlal Nehru, was at the White House when President Kennedy told him about a great new program called the Peace Corps and how Americans will soon be descending on India. Nehru replied: “Yes, I am sure they will learn a lot.”
Bill Gunderson is an author, wealth manager and creator of the Best Stocks Now app.