Many political events are foreseen; however, politics always aims to achieve multiple goals. However, as we all know, when trying to aim for multiple goals, it takes much more efforts and the probability for failure is higher than when only trying to achieve one particular goal. Moreover, when the politicians are trying to make favours for everyone, it is very likely for them to harm everyone at the same time, as the total resources in our society are generally fixed, unless improving our efficiency and productivity, any sort of redistribution of resources cannot give more benefits to a particular group of people with harming some other people's benefits. Therefore, the majority of the redistribution of wealth or resources can cause a loss in a particular sector, though it may deliver greater social benefits and social fairness.
In addition, in a general election political environment, language is something that makes people feel differently and could cause misleading or confusing information. For example. doing the same thing can be called as "providing stability" or "being conservative" or even "being old fashioned"; doing something different can be called "making changes" or "make something better" or "innovation" or "extremist" or "revolution". Different words can send different signals to the market and the society though they may represent same things. Some people may notice there is no difference, but many people could be influenced by the different word using. Moreover, politics is believed to be a process of compromise, so the plans and the final outcomes could be quite differently. Once it does not follow its previous guidance, it can create uncertainties and shocks to the financial market.
Overall, the signals of politics are too complicated and confusing to be useful or accurate to analyze their impacts on the market, the changes in politics can add more uncertainties and shocks to the market as well.
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