Populism, it turns out, is absolutely great for stock buyers

(May 3): If the last two decades of anti-establishment rule are any guide, the world may be on the brink of some monster stock rallies as it takes a turn toward populism.

A look at 10 of the 21st century’s most recognized populist leaders shows that in the three years after their election, local equities soared an average of 155 percent in dollar terms. And the rallies often continued as long as a decade after the vote.

The explanation, according to Satyen Mehta, a money manager at Neon Liberty Capital Management who has researched the phenomenon, is that populists often create short-term stimulus that supports growth even as the nations’ debt burdens swell. (Their foreign bonds, it should be noted, tend not to perform nearly as well.)

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