Some stock market pundits have been saying that one
of the primary reasons that the stock market has been behaving so rottenly
lately is the fear among investors that Barack Obama will be elected president.
These commentators cite Obama’s liberal economic policies that include a modest
increase in the capital gains tax. For
my part, I think this is nonsense. For
starters, it’s a fact that the stock market performs better when a Democrat is
in the White House. But perhaps more
importantly, I believe that investors will welcome a competent leader in which
there is trust and confidence. Clearly,
that is Obama who just judging him by the excellent campaign that he has run
can bring a new level of competence to the government. This will in my opinion lead to an era of
good feeling that will enable the stock market to rally significantly before
the end of this year.