What drives markets? Let's line em up and knock em down, Che Guevara style.
- Free market fiscal policies, of course! Really? Then why did markets soar under corrupt, socialistic filth like LBJ and Barack Hussein Obama. Next!
- Confident inspiring political leadership is vital! Oh, really? Then why didn't markets blink when JFK took one to the dome? Obviously because his veep was such a prudent, small government, business friendly free-marketer.
- Geopolitical stability, absence of war, that kind of thing. Oh, this kind of thing ? "Fifty years ago, the Cuban missile crisis brought the world to the brink of nuclear disaster. During the standoff, US President John F. Kennedy thought the chance of escalation to war was "between 1 in 3 and even," and what we have learned in later decades has done nothing to lengthen those odds. We now know, for example, that in addition to nuclear-armed ballistic missiles, the Soviet Union had deployed 100 tactical nuclear weapons to Cuba, and the local Soviet commander there could have launched these weapons without additional codes or commands from Moscow. The US air strike and invasion that were scheduled for the third week of the confrontation would likely have triggered a nuclear response against American ships and troops, and perhaps even Miami. The resulting war might have led to the deaths of 100 million Americans and over 100 million Russians."
- It's all about valuations. So you're the guy who sold in 1995 when P/E's hit 20 and the market still had five more years of soaring to do?
- Seth Klarman: artificially low rates blow bubbles. Right, like when zero rates blew the Nikkei lower for a measly 20 years. 
Maxim #1: When a country's Central Bank executes its job with tolerable competence, relatively stable Nominal GDP is enabled, and valuations tend to rise.
That is the only macro market maxim not shattered by basic historical facts.
 How is the "low rates blow bubbles" crowd unaware of the low rate secular grizzly bear Japan has experienced since 1990. That's what I mean by "get basic facts straight".
 Tax, spend and regulatory policy helps explain why the US is richer than France. But these fiscal policies accumulate. They accelerate like cruise ships. France can elect Barry Goldwater, and the US can elect Jacques Chirac, and guess what? Four years later France is still going to be more socialistic than America. In contrast, Central Bank policy can accelerate like a jitter bug. A new regulation is one tree in a forest of regulations. It is marginal. In contrast, a NGDP target rule is a complete and immediate break from, for example, a currency peg. It's not that the Central Bank matters more than the Federal Government in an absolute sense. It is that it can change must faster. The break from Carter to Reagan was symbolically large, superficially impactful. But the break from a "inflation is non-monetary" Keynesian Central Bank to an "inflation is a monetary phenomenon" Volcker bank is gigantic and immediate.