Wednesday, August 25, 2010

Could U.S. November Elections be Catalyst for Stocks?

A recent scoring of projected Congressional election results for this November as seen in the Wall Street Journal showed Republicans picking up 42 House seats to take majority at 220 to 215, and 7 Senate seats to close to 48 Rs and 52 Ds.  We recently listened to a money manager (with $45 billion under management) explain his optimism for stocks in a variety of terms, including those political.

The political positives per this manager were that the November election results would see enough change in Washington to give investors comfort of a more stock-market-friendly set of office holders, thus proving a catalyst for market gains.  If the projection for Republican gains proves accurate, we may well get the opportunity to see if the "catalyst" theory proves true.