By Frank Holmes via Iris.xyz
Here at U.S. Global Investors, we’re politically agnostic. We believe there’s money to be made no matter which party is calling the shots. That’s why we focus on government policy instead of partisan politics.
Having said that, I think most of you would agree that there’s lately been a change in some American voters’ appetite for socialist-leaning policies.
Need proof? A Gallup poll from August of last year found that, for the first time in modern memory, Americans aged 18 to 29 are more positive about socialism than they are about capitalism. Fifty-one percent preferred the former compared to 45 percent for the latter.
I don’t need to remind you that socialist policies are naturally anti-business and anti-private property, and they create all sorts of friction in the formation of new capital. A “threat to U.S. equity valuations is emerging in the form of left-wing populism in America,” writes Christopher Wood in his widely read GREED & fear newsletter.
Again, we believe extremism at either end can raise huge obstacles for business and investors. The difference, though, is that hard-left legislation seeks to punish wealth and prosperity through politics of envy. Amazon, one of the world’s most valuable companies, was driven out of New York as if it were the plague. The online retail company came under additional fire last week when Massachusetts senator Elizabeth Warren said she would break up giant tech firms if she were elected president.
Click here to read more on Iris.