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International Politics: What Stocks' Trend Tells You About Next Steps

by Murray Gunn
Updated: June 04, 2021

The introduction of the euro as a single currency. The Mideast Peace Accord. These and many other major milestones in international cooperation (or lack thereof) fit neatly on a stock market chart. Why?

You see, the stock market reflects our shared mood -- or social mood, as we call it. That's why, when you plot big political events on a chart, the positive ones tend to group near market tops, while negative ones tend to hug the bottom.

Next week in England, the G7 nations are meeting to discuss the "global effective minimum corporate tax rate." If that phrase gives you a toothache, you're not alone.

But as unexciting as that may sound, there is a lesson to be learned here -- a lesson in how social mood, as reflected by the stock market's trend, influences big politics.

Our Head of Global Research explains. (ETF VT in focus.)

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