Tuesday, February 28, 2012

Stock Market Like Gridlock in Washington

The article is hoping for a gridlock in Washington, D.C. The Market like to see an Obama presidency and a Republican Congress. As long the GOP can stop Obama's lunacy, the market will slowly improve. From 2006-2010, America has seen the consequence of a Democrat Majority, and that was ugly. There hasn't been a good Democrat president in a long time. We have seen a Democrat president and a Republican Congress in the 1990's, and the market did very well. It would be nice to prove to America that a Republican Tri-Fecta would put the economy back on track and put exceptionalism back in America.

(CNBC) While President Obama may not be Wall Street's ideal candidate, stock prices are rising on growing expectations he will be re-elected this November.

Part of that, market pros say, is simply that investors feel more certain about who will be in the White House for the next four years and which policies they will have to deal with.

Obama's chances of winning in November increased to above 60 percent on Tuesday, up from about 50 percent at the beginning of the year, according to the odds on prediction market Intrade.com.

History shows the market tends to rise during election years. Gains tend to be even greater if the incumbent party wins.

Intrade puts the Republicans’ chances of controlling the Senate and House after the November elections at 72 percent and 64 percent respectively.

That brings up another Wall Street maxim: “Market likes gridlock.” This way, a single party can’t mess it up.