30 Janvier 2017
It seems to be all about politics these days, but despite its importance it should never be overlooked how much more is at play. We live in a world where political headlines continuously interact with market sentiment and market dynamics provide a direct channel by which emotions of the crowd are transported to the underlying economy. Moreover, the state of the economy is actually also an important driver of both market behaviour and voter preferences and thereby provides another feedback loop into politics and the mood on financial markets. Actually, politics, markets and the real economy are in constant mutual interaction and they influence each other to varying degrees over time and with unstable causality. On top of that, these factors are only a high level simplification of all the forces at play in our globally integrated socio-economic system.