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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The writer is a financial journalist and author of ‘More: The 10,000-Year Rise of the World Economy’
Political turmoil seems to be prevalent across various nations, impacting both developed and developing countries. The underlying issue appears to be the challenge of maintaining voter satisfaction in a democracy amidst stagnant living standards.
Interestingly, while political unrest is on the rise, equity markets are thriving. Major indices like the S&P 500 and FTSE 100 have seen significant gains in recent times. This juxtaposition raises questions about the disconnect between economic performance and public sentiment.
The disparity between corporate profits and voter discontent is a key factor in this scenario. Despite concerns over political developments, investors remain optimistic about market performance, especially in the US. The divergence between economic indicators and public perception poses a unique challenge for policymakers.
Looking ahead, the future of democracy seems uncertain, with the possibility of plutocracy or gridlock looming large. Economic growth, immigration policies, and political dynamics will play a crucial role in shaping the trajectory of developed economies.
Investors, in particular, may face challenges in navigating a shifting geopolitical landscape where nationalist sentiments and protectionist policies could disrupt established norms. As global dynamics evolve, the resilience of financial markets will be put to the test.