I recently wrote an article where I mentioned the economic fact that nothing in the perceptual world has in itself any value whatsoever. The only reason anything in your world has value is because you believe it so AND so does at least one other person. Collective agreement is the only reason anything in our world has value.

On a deeper level you could say that the only reason our perceptual world even exists is because all of our minds agree it is so. Think about this for a moment. When you were born a group of other minds constantly persuaded you to think in a consistent manner so that in gradual agreement your mind assigned a symbol to every object you were shown how to perceive.

Your entire language, family history, and socialization was something continually taught to you in one way or another over the formative years of your life. If you had been born into a different family or even a different species like dogs (I am a dog lover) the way you assemble the world in your mind and thus your very perception of everything would be entirely different.

This impacts you as a stock investor. In my recent article How To See The Stock Market Correctly! I mentioned that this collective agreement process also dictates the values we assign to all goods and services in our economy. If our perception changes regarding a good or service then its corresponding value will change. It is human perception that creates value and not resources in our modern world.

Think about this a moment. It is the perception focused productive efforts of everyone in society that allows you to flush a toilet in the morning, brush your teeth, drive down a well maintained road to work, and live and work with roof over your head. It is the productive efforts of all of us that transform the stuff that appears to be out there.

I am constantly hearing and reading these days economic mumbo jumbo about secular bear stock markets for all sorts of macro reasons. I simply remind my friends and colleagues when I hear or read such nonsense that macro economics is the most dismal of sciences due to poor data. It is like fortune telling without a cheap crystal ball. But there is a phenomena occurring that people are not paying much attention to that is very likely to have an enormous impact on our world economy and hence our stock markets this century.

People seem to have forgotten that the Soviet Union has collapsed The Soviet Unions total population as of its final census, in January 1989, was 286,717,000 people. Think about this; over a quarter of a million minds and bodies have been added to the collective production pool!

This tells me as a financial economist that with such a large addition of human capital to the collective work pool the world economy can only expand. That means more quality goods and services for us in the United States. It also means more quality goods and services for them which are larger export markets for us. The recent opening of vast pools of human capital world wide I believe is creating the most striking economic expansion in world history this century. For this reason I firmly believe we will enter the largest bull market in world history this century and that the Dow will eventually hit 100,000. I am not only bullish on America I am bullish on the world!