July 31, 2012
You Better, You Better, You Bet
Picked up on an interesting article at CNBC, detailing how Wall Street expects the election to turn out this November:
One analysis concludes that last week's sharp three-day market surge can only mean that Wall Street is banking on a victory from Republican Mitt Romney.
That's the logical interpretation one can draw from a rally amid conditions that otherwise would demand a selloff, Morgan Stanley chief U.S. equity strategist Adam S. Parker said in an analysis that asserts there is no other reason now to like stocks than a Romney win.
In other words, stocks are on the uptick even though the economic news is all bad -- so in Wall Street's view, an impeding Romney win is the only thing that will save the day! Hardly a ringing endorsement of our current president's tenure, is it?
Ironic, considering how Barack Obama was Wall Street's golden boy back in 2008 (though how a quasi-socialist wealth re-distributor with radical ties got the high-finance guys all giddy remains a mystery to me). It just goes to show you how the Wizards of Smart aren't nearly as smart as they all think.
Still, I hope they're right on this one. After all, it ain't just their money riding on the outcome.
Hatched by Korso on this day, July 31, 2012, at the time of 7:47 AM
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