Today's political risks create 2025's policy risks for a simple reason: newly elected governments are always keen to make good on their election promises.
Spotting the signal and the trend amid the noise of the news cycle can be a challenge for all readers, including automated ones. Too many inputs from noisy or irrelevant sources can skew the outputs generated by automated processes, particularly if the processes were parameterized to prioritize the center of gravity. Algorithms can create an echo chamber that literally shifts the center of gravity, undermining the ability for machines and humans to spot strategic developments effectively.
Consider these three key election year policy risks currently delivering a noisy news cycle.
Renewable Energy (Wind, Solar, Hydrogen, Nuclear) + Climate Finance
Election results in Europe during 2024 delivered conflicting results across Germany, France, the UK, and the EU Parliament. The outcome of the US election will materially impact government policy regarding
--green subsidies
--carbon emissions reduction policy
--energy efficiency regulation
--individual energy types
--climate-related disclosures, and of course
--electric vehicle policy.
Pairing the policy data with physical data and market data (e.g., stock market tickers, sovereign green bond issuances) delivers additional real-time insights to drive strategic investments across a range of asset classes from equities and municipal bonds to sovereign fixed income.
Digital Currency Policy -- Crypto, DeFi, Tokenization, Stablecoins
Get ready now for quite a year in digital currency policy. The political and market landscape remain strikingly dramatic.
--One US Presidential candidate is promising a crypto-friendly regulatory environment AND has apparently established his own crypto/DeFi platform.
--Two G7 central banks are actively laying the groundwork for issuing reserve currencies in sovereign format. China's central bank has already taken this move. Some emerging markets instead have embraced BitCoin.
--Asset tokenization (securities, loans, deposit accounts) may do more for mainstreaming blockchain-based finance solutions than retail-based cross-border payments initiatives.
Tariffs and Monetary Policy
Tariffs have become the preferred tool for policymakers to extend their climate, energy, and geopolitical priorities to trading partners. More can be expected when the EU fully implements its carbon border adjustment mechanism (carbon-related import taxes). Tariffs also feature as a main talking point in the US election.
Continued implementation of existing tariffs -- not to mention the imposition of new tariffs -- will materially impact global supply chains and further complicate inflation dynamics managed by central banks. We understand this. Which is why our monetary policy data generation process includes language-derived data regarding supply chain and trade policy issues in addition to labor markets and, of course, interest rates and inflation. You can literally connect the dots faster every day by engaging with this industry-defining macro data.
The Power of Precision-crafted Alt Data in Political Risk & Policy Risk Analysis
You don't need kitchen sink language inputs that amplify information overload without delivering efficient insight. You need technology that reads, counts, and writes like a senior policy professional, preferably one that has served in government and knows the language already without having to go through resource-intensive, expensive training cycles. You need alternative data and generative AI solutions programmed by policy professionals that know where to find the signal and how to read the language.
We have your back. Your existing internal experts receive the benefit of working with data generated with a commitment to having a human in the loop while respecting copyrights. Your team works works more efficiently when using data and signals delivered by our advanced patented technology. PolicyScope Alt Data offers a fresh lens through which to analyze public policy complexities, uncovering hidden patterns and correlations that may not be evident through traditional data analysis alone.
By leveraging the Alt Data PolicyScope outputs, portfolio managers, strategists, and equity analysts can gain unique insights and a more nuanced understanding of political environments that go beyond what traditional data sources offer.
Our language-derived Alt Data allows for the detection of emerging trends and early identification of political shifts that may impact markets, investments, and overall business strategies.
The outputs support a range of use cases.
Data scientists, genAI architects and portfolio managers can amplify automated workflows by connecting to our daily, tickerized datafeeds, with delivery via Databricks.
Strategists like equity analysts, global macro strategists and industry advocates can personally interact with the trend data or the words themselves through a Tableau-based dashboard or their internal dashboards. Customized generativeAI chatbots that serve as automated research assistants are also available upon request.
Regardless of the format or the use case, the data delivers next-generation decision intelligence that anticipates government policy shifts hiding in plain sight....and related market reaction functions.
By harnessing Alt Data in political risk analysis, professionals can adapt to the dynamic nature of global politics, anticipate unforeseen developments, and proactively manage potential risks to their operations or investments.
BCMstrategy, Inc. delivers industry-defining quantitative and language data to help power advanced decision intelligence in capital markets, advocacy, and strategy consulting. The award-winning patented process provides multifactor time series data and structured language data designed from the beginning to support a wide range of AI-powered predictive analytics solutions.
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