Occupy Nation: Tomorrow’s market moving headlines and how to prepare for them
Last week, I talked about how the mainstream media has misreported, under-reported and propagandized the coverage of the Occupy Movements around the country. The reason, put simply is that these protests are focused as much against the welfare/cozy-connection of the media conglomerates that receive billions in special tax breaks, bailouts and loans from the Republican/Democrat Regime’s government as they are against anything else. And the mainstream media, especially the giant news stations that receive all that welfare, stimulus, tax-incentive and bailout money definitely don’t want to pound that simple message from the Occupiers home.
And to be clear, the primary message from the Occupy Wall Street Movement isn’t simply anti-Wall Street, as is so often misreported, but is anti-welfare for Wall Street. And the ongoing welfare for Wall Street includes, as Yves Smith recently summed up, is no joke: Banks, particularly in this era of extraordinary support (rock bottom interest rates, regulatory forbearance, underpriced insurance schemes), enjoy far more government support than any other industry, including defense contractors.
Today let’s talk about how that under/mis-coverage has led the markets to misprice the near-term risk associated with these Occupy Movements. And next week, as planned, I’ll outline why the message and ultimate political and economic ramifications of these Occupy Movements are so wildly bullish for our markets and economy.Because the markets, the traders who dominate them and the full-time always-fully-invested-long money managers get most of their news from the mainstream media which is so badly under/mis-reporting these Occupy Movements, the near-term risks of near-term mass protests and/or public disruptions are much higher than these markets are pricing in. Indeed, these are markets which are in the midst of celebrating the very kind of bank welfare bailouts that these movements are against.I expect that within the next few months, probably after the winter when the weather for protesting turns better, the magnitude to which these Occupy Movements in the US and around the world will build are likely to shake the markets and the very foundations of the two-party/corporatist system which somehow passes for a democratic/capitalist free country these days.Which leads us to the topic of timing. If it’s likely to take several months before these Occupy movements really gain enough critical mass to impact the markets, then right now might not be the time to start to get defensive. Then again, the longer and more sustained and steadier these Occupy protests remain, the more likely “Mr. Market” is to start recognizing and then pricing in those risks. I’ll guarantee one thing — the mainstream media won’t figure it out til it’s too late, as always.Revolution Investing is all about trying to navigate exactly these incredibly volatile political and economic times and that means seeing past the today’s headlines and seeking what will impact our portfolios tomorrow. Look past the current coverage and seeming dismissal of these protests, as they are likely much more important than we realize for both the near- and the long-terms.
