Forget about deciding whom to vote for, the important decision is what to do with your investments:
I find it hard to believe that fears about a deep recession are suddenly dawning upon investors and thus are solely responsible for kneecapping the market. I've been hearing such dire forecasts for weeks from top Wall Street economists, and I really think they're already baked into the cake. (And credit markets actually look like they are finally picking up a bit—a plus for stocks.) So with that perception locked in, maybe the future political landscape is finally playing a greater role in the minds of investors, especially with polls showing a possible landslide Obama win and big Democratic congressional majorities. Is it really more plausible to suggest no effect whatsoever from a possible once-a-generation, political sea change, especially one that moves away from the winning economic formula of the past 25 years ? Not even a smidgen of worry? C'mon, now.
So at what point do you determine if the Obama discount is priced into the market? (if such thing exists) Will the markets rally if McCain pulls off the upset victory?
And in case you think I'm pulling hard for McCain I'll remind you of this by Radley Balko, Why the Republicans Must Be Defeated This Year. Hard for me to disagree, although I haven't yet decided how or if I'll vote in the presidential race. This the first time ever that I've remained undecided.
