Yesterday answered a couple of gigantic pending questions- who will be our President for the next four years, and how would the VRNG/GOOG trial come out. Questions answered- one bigger national news than the other.
Lost in the Electoral College landslide is the news that Mitt Romney attracted 57 million votes vs Obama at about 59.6 million. Clearly, there a lots of US citizens who don’t believe in the Obama agenda. The democrats simply had a better message and a better organized campaign for the middle class voters in the swing states. While an Obama Presidency might not be ideal for the long term fiscal health of the US, I personally believe a continuation of the current policies will be good for the stock market in 2013.
A continuation of the current fiscal policies will have the US awash in liquidity thanks to a highly accommodative FED. The banks are loosening up their lending standards to make mortgage money more attainable. This will allow many of us to refinance at lower rates, and create upside pressure on residential real estate prices. Low interest rates are also forcing money into stocks to seek returns.
If there’s no major shake up in tax policy (that’s code for the fiscal cliff)- the markets should do very well in 2013 by default. We’re still shaky, but less troubled than the rest of the world.
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