The heavy hand of politics is back, more than ever mingling with markets. When government statistics and even stock market levels are politicized, investors should remain cautious when faced with official reporting.
In times of peace and economic growth, democratic institutions and the rule of law function at their best. Some effort is done for information to be relatively accurate and pluralistic; economic data fairly reflect a country’s performance; central banks operate with a degree of independence; and stock market valuations are based, at least for a good part, on fundamentals.