When French People Say the State Is Too Large, Something Huge is Happening

A not-so-quiet revolution is sweeping the globe.

From Donald Trump’s surprise election win to Britain’s bombshell vote to leave the European Union, entrenched political elites are being uprooted and taken behind the woodshed by an irate electorate.

It’s easy for investors to view these events in isolation, says Pippa Malmgren, founder of economic consultancy DRPM Group and author of the best-selling book Signals.” But to truly understand the global zeitgeist, however, investors should consider this shocking fact:


On April 23rd, French voters will decide between the country’s two current political frontrunners. Marine Le Pen is president of the right-wing populist party National Front and Emmanuel Macron leads, En Marche!, a liberal political party he founded just last year. The two are neck and neck (and depending on the poll data you’re looking at, either candidate inches out the other, getting between 26% and 28% of the vote).

Both are outsiders. And both want to shift the balance of power from the government, back to the people, Malmgren says in the Real Conversations interview above with Hedgeye CEO Keith McCullough. (Meanwhile, embattled establishment candidate Francois Fillon has likely tanked his political ambitions. He is under formal investigation on suspicion of embezzling state funds. A recent poll found that three-quarters of French voters want Mr Fillon to pull out of the presidential race.)

Here’s the big picture takeaway from Malmgren in the video above:

“All of these European nations – Austria, Sweden, France, Denmark – they are all moving in the way of a Brexit but they may not go all the way to the exit door. What they’re moving toward is a smaller state, more personal freedom, especially more entrepreneurial freedom. More ability to build a business yourself because you can’t depend on the state. They’re broke.”

To better understand what this all means for investors, we encourage you to watch the entire Real Conversations interview between Malmgren and McCullough, “Pippa Malmgren Unplugged: Investing In An Age of Global Angst.”