Historically, politics has often been considered to be the art of the possible, a matter of pragmatism instead of idealism. It would seem that currently, politics has turned into a blood sport, with the goal of destroying the opposition, rather than finding a middle ground that both sides can live with.
This may, in part, have contributed to some of the more unilateral and unsuccessful, all in strategies, such as the Sri Lankan agricultural fiasco and the German energy disaster.
This, take no prisoners approach to governing, presents new challenges for investors. The premise that common sense is likely to prevail over ideology, may no longer be the norm. Investors will have to consider that political idealism can lead to train wrecks and act accordingly.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA