Well that was a trouncing.
After ‘shocking’ warnings last week that UK Prime Minister Boris Johnson might — at best — be left with a hung Parliament, the voters finally had a chance to have their say.
And say it they did.
With Jeremy Corbyn banging the socialist drum, Labour took its biggest trouncing in 84 years. Labour now holds 203 seats in Parliament.
Meanwhile Boris Johnson, who we were told was ‘fighting to hold his seat’ only last week, led the Conservative to a take 365 seats. That’s the Tories’ biggest majority since 1987.
It’s a lesson pollies in the US, the world’s biggest economy, should study closely.
The US presidential election is less than 11 months away. And two of the three leading Democratic candidates hoping to kick Donald Trump out of the White House are out of the closet socialists. Namely Bernie Sanders and Elizabeth Warren.
Both are running on big spending, high taxing platforms. And both plan to soak the supposedly wealthy to pay for their largesse.
But here’s what they’re missing.
Folks in the Western world — especially the US — tend to have high aspirations. Often, unreasonably high.
The worker struggling by on a lower middle income is convinced they’ll soon make management…and eventually be running the show.
The small business owner with one shop barely breaking even dreams of the franchise agreements that will see their business spread from coast to coast.
The farmer suffering crop damage from late frost is sure next season will be different. Just a few more years and they’ll be on easy street.
It’s not just the American dream, as we witnessed earlier this year with Scott Morrison’s victory in Australia. And just last week in the UK.
Wealthy voters want to be allowed to hold onto most of the wealth they’ve rightly earned.
Poor voters aspire to be wealthy. And once they climb that hill they don’t want to hand over 80% of their hard earned cash to government.
If US Democrats don’t wrap their heads around that soon, they’ll be handing Trump four more years on a platter.
That will have all sorts of implications to your best investment strategies. Including how much gold you may wish to hold onto.
To find out our own Greg Canavan’s top tips for picking winning gold stocks, go here.
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