I recently wrote an article in which I mentioned the economic fact that nothing in the world of perception has any value. The only reason anything in your world has value is because you believe in it and at least one other person. The collective agreement is the only reason something in our world has value.
On a deeper level, you could say that the only reason our world of perception even exists is that all our minds agree that it is. Think about that for a moment. When you are born, a group of other minds constantly persuade you to think consistently, so that in gradual agreement your mind assigns a symbol to each object that has been shown to you how to perceive.
Your entire language, family history, and socialization have constantly taught you in one way or another throughout the formative years of your life. If you were born into another family or even of a different kind as dogs (I am a dog lover), the way you gather the world in your mind and thus your perception of everything would be completely different.
This affects you as a stock investor. In my recent article, How to See the Stock Market Properly, I mentioned that this collective bargaining process also dictates the values we attribute to all goods and services in our economy. If our perception changes in relation to a good or service, then the corresponding value will change. Human perception creates value, not resources, in our modern world.
Think about that for a moment. It is the perception-focused productive efforts of everyone in society that allow you to go to the toilet in the morning, brush your teeth, drive on a well-maintained road to work, and live and work with a roof over your head. The productive efforts of all of us transform the things that seem to be there.
I constantly listen to and read nowadays an economic scumbag about secular bear stock markets for all sorts of macro reasons. I just remind my friends and colleagues when I hear or read such nonsense that macroeconomics is the darkest of sciences because of bad data. It’s like divination without a cheap crystal ball. But there is a phenomenon that people do not pay much attention to, which is very likely to have a huge impact on our global economy, and hence on our stock markets in this century.
People seem to have forgotten that the Soviet Union collapsed. The total population of the Soviet Union at the last census in January 1989 was 286,717,000. Think about this; over a quarter of a million minds and bodies have been added to the collective production pool!
This tells me, as a financial economist, that with so much human capital added to the collective labor fund, the world economy can only expand. This means more quality goods and services for us in the United States. This also means better quality goods and services for them, which are larger export markets for us. The recent opening of huge pools of human capital around the world, I believe, creates the most striking economic expansion in world history in this century. For this reason, I firmly believe that we will enter the largest bull market in world history this century and that eventually the Dow will reach 100,000. I’m not just a “bull across America,” I’m a “bull across the world!”