I’ll begin by stating that the following post does not violate my self-imposed sanction against political snark on my part. This is a neutral and objective piece, intended to offer thoughts about how the forthcoming election will affect the market. You will be delighted to know it is certified snark-free.
I will begin with what I believe are a few fundamental truths about the relationship of politics and equities:
- No office holder wants to see the stock market go down – – ever – – because 99.999% of the public wants stocks to go up – – forever – – and a bear market makes people grumpy.
- To varying degrees, politicians have some control over propping up the stock market, but they are not omnipotent. George Bush wasn’t cheering on the wipeouts of 2001-2002 and 2008-2009, but they happened anyway, which led to the surprising Obama victory.
- I cannot think of any politician in history, however, who has been more dependent on the stock market staying high than the current occupant of the White House.




