Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Global Economy is Watching ISIS

Politics / Global Economy Sep 06, 2014 - 12:56 PM GMT

By: Harry_Dent

Politics

The biggest news topic in our global economy now centers on the growing threat from ISIS. They are well-funded, well-organized and brutal. Their on-the-ground army in Iraq and Syria and their extremely violent actions have the world on edge.

After the beheading of two U.S. journalists, Obama has said that the objective is clear: “That is to degrade and destroy ISIS.”

The world’s Geopolitical cycle is heating up. And it doesn’t bode well.


Currently, the stock market is largely ignoring these risks… and I believe it’s just a matter of time before they get a very rude awakening. There are much worse demographic trends ahead and higher debt than what was experienced during the global financial crisis of 2008.

I added the Geopolitical cycle to my hierarchy of key cycles in early 2006 when the roaring 2000’s bull market did not end up being as bubbly as the 1995 to 2000 tech bubble. Every 18 years or so, stocks and the general economic environment wax and wane, they go bullish and bearish and shift from favorable to unfavorable.

The last cycle with a favorable geopolitical environment with no major wars or inflation shocks was from 1983 to 2000.

Then the world changed on September 11, 2001…

How Wars Affect Our Economy and Markets

Soon after 9/11, we began our ill-conceived retaliation with the Iraq war. Then we entered another, more justified war when it was discovered that Afghanistan was harboring al-Qaeda. But both wars cost us a lot and accomplished little. When we had to pull out, the terror and fringe groups just moved right back in and took over.

Obama recently said at a fundraiser that the world is safer than it was 20 years ago… it sure doesn’t look that way to me.

All we have to do is look at the unrest in so many places. The Arab Spring moved from Libya to Tunisia to Egypt. The Syrian civil war is still raging. The Gaza Strip was pounded during the 50-day war between Israel and Hamas. And let’s not forget North Korea doing one stupid thing after the other, especially with the holding of three U.S. citizens on ridiculous charges.

More recently, we have the invasion of Crimea and Ukraine by Russia.

It’s hard not to see ISIS as the greatest potential threat in the Middle East right now. And its sights blatantly target those of us in the west. Our cities have become potential targets for terrorist attacks considering the concerted recruitment efforts by ISIS in both the U.K. and the U.S.

Minneapolis is now a hot spot for ISIS recruitment of American converts. They hone in on disenfranchised young men and women who are confused and lost between their Muslim and western identities.

Not only is the Middle East boiling over, but Putin is actively thumbing his nose at the entire world. He shows clear intentions of bringing Ukraine and other regions back into a new militaristic Soviet state. And we can’t forget that Russia is still the second-greatest nuclear force after the U.S.

Any alliance that forms to battle ISIS will not only be made up of the U.K. and other western allies but by many Arab states as well. Saudi Arabia, Iran, Egypt and Turkey… they all see ISIS as a major threat. Could we possibly see long-standing warring nations band together against a common enemy?

Time will tell…

All of these events feature prominently in this powerful Geopolitical cycle that is playing out and it will continue to point down into late 2019 or early 2020. These Russian threats, civil wars and Islamic/West conflicts are only going to continue and get worse over the next five years or so before this cycle finally turns positive again around 2020 moving into 2036 to 2037.

When you have a mound of sand and you begin dropping grains on it one by one, you can really never tell which one will cause an avalanche, but it will occur. And when the odds increase, the steeper the mound becomes.

This stock bubble is getting very steep and the possibility of an avalanche is growing.

For those investors with passive 401(k)s, IRAs or retirement brokerage accounts, look into selling stocks on every rally in the weeks and months ahead. It’s better to be a bit early rather than a bit late in getting out.

The first major drop when this bubble finally bursts is likely to be quick and violent. And you don’t want to get buried.

Harry

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.


© 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