12 Percent Stocks Rising Pre-Elections Celebrate Budget Deadlock
From businessweek dot com,
President Barack Obama’s dispute with Congress cost U.S. stockholders $680 billion last week. It may be a clash investors end up embracing, based on more than a century of market history.
Howard Ward, said on July 26,
A grand bargain is just the ticket to power stocks. With the Fed on hold, Greece off the table and a bipartisan debt deal in Washington, stocks would be the only game in town.
Howard Ward is an important person who assists overlook $35 billion in Rye New York, fοr Mario Gabelli’s Gamco Investors Inc. Pittsburgh-based Duessel explained a telephone interview on July 26, her company overlooks $354.9 billion :
These three areas are the cyclical areas that would do better if economic activity was doing well. If our leaders spend money to jump-start the economy, then those sectors would all benefit.
Rob Arnott – founder of Research Affiliates LLC in Newport Beach, California – added, this year could be different as the government has run up debt thru stimulus spending which might be reduced.
If they take spending off the table quickly enough, it creates a major recession. What the rating agencies are pointing out is if you don’t take spending off the table, you eventually hit a Greek- style wall, and they can’t allow that.