Anger Mismanagement

Anger Mismanagement by Robert Gore – Straight Line Logic

A new bull market is coming that will wipe out many of the current bull markets.

Its chart looks good—building a base for decades, lately bursting through the top of its range. The ascent has been steep, pullbacks minor, and it looks like it’s gathering steam for a long run.

Anger is lifting off in what market technicians would call the first impulsive wave of a new bull market. That’s the technicians’ way of saying this is just the beginning. Punctuated by brief remissions, there are many more and much larger waves to come before this trend is exhausted.

One of the best technicians of them all, Robert Prechter, has spent his career analyzing the indicators and dynamics of social mood, his touchstone term that has yet to make it into the popular lexicon. By the time this trend exhausts, perhaps there will be more widespread recognition of both the term and its awesome power. The anger waves will lay waste to the best laid plans of mice, men, women, and whatever you want to call those witless, arrogant creatures who inhabit central banks, governments, and globalist fronts…and those who pull their strings.

Financial markets, particularly equity markets, are indicators of social moods. In the US, equity markets are at or close to all time highs, indicating buoyant optimism. They have rallied for almost ten years since touching bottom at the nadir of the financial crisis. However, the losses suffered by many investors and homeowners from the crisis, the bailouts of connected financial institutions, and the perpetrators’ escapes from punishment have not been forgotten. If they had been, Donald Trump would have never been elected.

That was anger’s break out moment, a clear indicator of an impending social mood trend change. Since then, the rancor has escalated, engulfing those who both despise and deify Trump. The internecine bloodletting has a long way to go, and it’s not confined to the US. Brexit was the European break out. Nationalist movements increasingly challenge the elite consensus on immigration and EU integration.

All this while economies are still supposedly expanding. $250 trillion in direct global debt and $1 quadrillion or more in derivatives and unfunded liabilities hang like a dagger over the world economy and financial system. Most income streams and assets are pledged as security for debt repayment, every debtor’s debt is a creditor’s asset in the interlinked global financial system, global debt is at an all-time high, and the finance industry is more concentrated than it was in 2008. It won’t take much for a financial brush fire to become a roaring conflagration.

When a trend reverses, there are portents before the reversal. If anger is blossoming during the so-called good times, imagine what happens during the bad. In relationships gone sour, there’s often a terminal moment when the partner who once could do no wrong can no longer do anything right. Every underlying motive is put in the worst possible light. The relationship is over.

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Robert Gore

Robert Gore was born in 1958 in Livermore, California. He grew up in Los Alamos, New Mexico, where both his parents worked for the Los Alamos National Laboratory. His undergraduate education was at UCLA. He graduated in 1980 summa cum laude and Phi Beta Kappa with a double major in economics and political science. He completed the JD/MBA program at UC Berkeley in 1984. He held part-time jobs throughout undergraduate and graduate school. He passed the bar exam and is an inactive member of the California Bar Association. Mr. Gore’s career in finance began in 1984 with a bank in San Francisco, trading municipal bonds. In 1985, he went to a Wall Street firm’s west coast municipal bond office in Los Angeles as a bond trader. He developed its block and institutional sales capabilities and after four years was promoted to manager of the region.