Delete comment from: Captain Capitalism
I think a lot of the rise is due to polling data that indicates the Republican will win big in November. That means at the minimum that businesses can stop worrying about new anti-business legislation and at best means that some of the horrible legislation passed over the last two years will get rolled back. Even if nothing gets repealed before 2012 a lot can get defunded.
In a sense, it is like the hurricane winds flag is being replaced by a tropical storm winds flag.
The stock market looks ahead six months to a year. Except in very unusual conditions -- like when real estate and bonds are so bad your only choice to place capital is in stocks -- the stock market is generally a leading indicator of economic health. Investors are looking beyond the bad news.
OTOH, if the Republican wave is small in Nov, expect another stock market crash.
Oct 9, 2010, 3:39:09 PM
Posted to Looking for a Bubble