Good-bye globalization. The trend is now set to shift toward tension and even all-out trade wars. Our just-published October Global Rates & Money Flows gets you up to speed:
There’s a reason why protectionism is on the rise, and it’s nothing to do with politicians.

The chart above shows the value of global cross-border trade as a percentage of the world’s aggregate Gross Domestic Product (GDP).
On the face of it, globalists will be encouraged by a multi-decade uptrend. But Elliotticians will immediately notice a familiar pattern. It’s clearly possible to identify a five-wave advance in global trade from the 1960s. That means there is a high probability of the uptrend coming to an end. Although we don’t have data going back earlier, the 1960s coincided with the end of Cycle degree wave III in our thesis that Supercycle wave (V) has been under way since the 1932 low in nominal U.S. stock market prices. We also view that trend as ending. In real terms, though, the Supercycle likely ended at the start of the century as the chart below makes clear.

In gold terms, the S&P 500 index surged during the 1980s and 1990s. This was the era when globalization was becoming the hottest trend that companies were focusing on as “multi-national” firms expanded strongly. Social mood was extremely positive as the dawn of a new millennium approached. Peace accords and inclusion were the order of the day.
At the very start of the millennium, though, social mood as measured by the stock market in gold terms peaked and started a negative trend that looks far from over. Feelings of peace and inclusion have turned to war and division. It’s no surprise to socionomists that trade tensions have been ratcheting up over the last decade with politicians of all stripes in all countries now entertaining the idea that protecting your home market should be a main priority.
If our thesis is correct, and the stock market of the largest economy in the world now declines in nominal terms as well as real, we can expect trade wars to ramp up just as they did in the 1930s.
Should you fear a return to the financial ugliness of the 1930s? The best plan is to prepare. Global Rates & Money Flows can help. Review it by following the link below.
Get specific and useful ideas on how to prepare for difficult times by following this link: