Welcome to Money Morning - Only the News You Can Profit From.

Skip to content

Obama Administration - Money Morning - Only the News You Can Proft From.

Will Midterm Elections Ignite a Stock Market Rally?

October 29, 2010

By Don Miller, Contributing Writer, Money Morning

The Democrats and Republicans have spent a record $3.5 billion in preparation for this year's midterm elections. But regardless of the outcome – whether you're a Democrat or Republican – the good news is that the stock market traditionally has performed well during midterm election cycles.

"The question is, 'Did the markets go up in the midterm election years by more than average in non-election years?' Brian Gendreau, market strategist for Financial Network told U.S. News & World Report. "And the answer is, 'Yes, by a huge amount more.'"

In the period from 1922 to 2006, the average gain of the Dow Jones Industrial Average over the 90 trading days following midterm elections (roughly November until mid-March) was 8.5%, according to a new study authored by Gendreau. That's almost 5% higher than the Dow's gains in non-election years.

  • About the Author
  • Syndicate

An Open Letter to Washington: How to Fix the Deficit and End the Bush-Tax-Cuts Debate

October 28, 2010

[Editor's Note: When it comes to explaining the interaction of politics and business, Money Morning's Martin Hutchinson is without peer. On the eve of Tuesday's U.S. midterm elections - in an open letter to U.S. President Barack Obama and members of Congress - Hutchinson outlines a simple plan that will blunt the growing federal budget deficit, resolve the Bush-tax-cuts controversy and rein in Wall Street.]

By Martin Hutchinson, Global Investing Strategist, Money Morning

Dear Mr. President and members of Congress:

In the months that follow Tuesday's midterm elections, and into the New Year, you all face three very significant challenges. You must:

  • Find a solution to the Bush-tax-cuts controversy.
  • Rein in the huge-and-growing U.S. budget deficit.
  • And better police Wall Street, which got us into this mess in the first place.

You can solve all three of these problems with a single, simple proposition. And you can do so without having to ask U.S. taxpayers to dig into their wallets or savings.

Let me explain.

To see Hutchinson's solution, and to see how to join our campaign, please read on…

  • About the Author
  • Syndicate

Investment Strategies: Three Ways to Profit – No Matter Who Wins Tuesday's Midterm Elections

October 27, 2010

[Editor's Note: Money Morning's Keith Fitz-Gerald - a noted commentator and best-selling author - has been a frequent guest analyst on Fox Business. In his latest interview, Fitz-Gerald detailed the three trends that will afford investors the greatest potential for profits after Tuesday's midterm elections.]

By William Patalon III, Executive Editor, Money Morning

If you're worried that next week's midterm elections could further cloud an already-uncertain investment landscape, take a page from the investment playbook of Money Morning's Keith Fitz-Gerald: Position yourself to profit no matter which party wins on Tuesday.

During an interview with Fox Business Network journalist Stuart Varney yesterday (Tuesday), Fitz-Gerald detailed three strategies that will afford investors both safety and significant profit potential – whether the Democrats or Republicans carry the day.

For the full story – and a look at the video – please click here…

  • About the Author
  • Syndicate

We Want to Hear From You: What Are the Top Three Issues You Want To See Addressed After Midterm Elections?

October 26, 2010

By Kerri Shannon, Associate Editor, Money Morning

A tense Congressional tug-of-war will come to an end in less than a week, when the intensely sought-after seats in the U.S. House of Representatives and Senate are filled after the Nov. 2 midterm elections.

The Republican-Democrat contest is the hottest in years. The voter debate is about which candidates will be the most likely to lift the United States out of a morass marked by near-double-digit unemployment, sluggish economic growth and a terrifying $1.29 trillion budget deficit.

As campaigning time wanes, it's clear that an increasing number of seats are vulnerable.

"Let me tell you something," U.S. Vice President Joe Biden wrote Monday. "I've been around campaigns for a long time and I have never seen a midterm election with this many races in play."

Experts described this campaign season as more volatile than most because of a major possible shift in power.

  • About the Author
  • Syndicate

Money Morning Mailbag: GOP Announces "Pledge to America" as Voters Question Obama's Economy

September 24, 2010

[Editor's Note: We want to hear from you! Do you have a comment, suggestion, story idea or a question? Let us know at mailbag@moneymappress.com. (**) And be sure to check back for responses to reader questions and comments.]

By Kerri Shannon, Associate Editor, Money Morning

Republicans this week outlined their plan for reform in one-page summary entitled "A Pledge to America." Republicans today hope their pledge will do for them what the "Contract with America" did for Republicans in 1994 when the GOP gained 54 House seats and regained control of Congress for the first time in 40 years.

The proposal's goals include immediately canceling any unused funds from last year's $787 billion stimulus program, permanently extending the Bush tax cuts, repealing the new healthcare law, cutting $100 billion in discretionary spending, and freezing the size of the "nonsecurity" federal work force.  It also calls to end government control of Fannie Mae and Freddie Mac.

The plan comes at a time when many Americans are questioning the economic policies put forth by the Obama administration. With the unemployment rate stuck near 10%, President Obama two weeks ago  announced a new six-year infrastructure plan, which says will create a "substantial" number of jobs and improve the country's transportation system.

  • About the Author
  • Syndicate

Money Morning Mailbag: Market Volatility, BP's Blow Out, and Obama's Agenda

September 10, 2010

[Editor's Note: We want to hear from you! Do you have a comment, suggestion, story idea or a question? Let us know at mailbag@moneymappress.com. (**) And be sure to check back for responses to reader questions and comments.]

By Kerri Shannon, Associate Editor, Money Morning

As the first full week of September ends and the summer draws to a close, many investors are still looking for answers to questions first asked back in May, notably:

  • What's behind the recent market volatility?
  • Can we put BP behind us?
  • And what effect will President Obama's political agenda have on investments?

One reader writing into the Money Morning mailbag touched on all three of those topics. Wrote Ron, from Toronto:

Could it be that George Soros has finally dumped all of his equity holdings and that alone has cause a rebound in the futures and stock prices because there is simply less selling?

BP may be the next shoe to drop if that blowout preventer proves to be functional.

  • About the Author
  • Syndicate

Question of the Week: Government Intervention in the U.S. Housing Market Does More Harm than Good

September 8, 2010

[Editor's Note: Last week we asked readers if the U.S. government should offer more incentives to help the housing market.  Some of our readers' responses are listed below - along with next week's question,  "How Do You Feel About the U.S. Government's Proposals to Boost the Job Market?"]

By Kerri Shannon, Associate Editor, Money Morning

Experts fear that the already-battered U.S. housing market is getting ready to stall again, leaving the Obama administration to decide what – if anything – it should do next.

Standard & Poor's Case-Shiller Home Price Indices reported last week that home prices rose 3.6% in the second quarter from a year earlier – but the boost came from the first-time homebuyer tax credit that expired in April. And that doesn't bode well for the housing market's near-term outlook.

"The numbers were inflated by the homebuyer tax credit," David Sloan, a senior economist at 4Cast Inc. in New York, told Bloomberg. "The numbers will be going down in the coming months. We could see some significant declines."

  • About the Author
  • Syndicate

We Want to Hear From You: Should the U.S. Government Offer More Incentives to Help the Housing Market?

August 31, 2010

By Kerri Shannon, Associate Editor, Money Morning

Experts fear that the already-battered U.S. housing market is getting ready to stall again, leaving the Obama administration to decide what – if anything – it should do next.

Standard & Poor's Case-Shiller Home Price Indices yesterday (Tuesday) reported that home prices rose 3.6% in the second quarter from a year earlier – but the boost came from the homebuyer tax credit that expired in April. And that doesn't bode well for the housing market's near-term outlook.

"The numbers were inflated by the homebuyer tax credit," David Sloan, a senior economist at 4Cast Inc. in New York, told Bloomberg. "The numbers will be going down in the coming months. We could see some significant declines."

  • About the Author
  • Syndicate

Can the Obama Administration's New Stimulus Plan Revive the Housing Market?

August 31, 2010

[Editor's Note: To read a story about the deteriorating U.S. housing market that appears elsewhere in today's issue, please click here.]

By Don Miller, Contributing Writer, Money Morning

Worries about the sorry state of the U.S. economy have officials from the Obama administration digging deep into their bag of tricks to stop the skid before it slips into a double-dip recession.

Their latest move was announced Sunday when Housing and Urban Development Secretary Shaun Donovan said the White House plans in the next few weeks to set up an emergency loan program for the unemployed and a government mortgage refinancing effort.

Despite all the monetary and fiscal firepower the U.S. Federal Reserve and the Treasury have deployed, economic growth has slowed to an agonizing pace. The slowdown has hit the housing market particularly hard, as evidenced by home sales that dropped to record lows in July.

  • About the Author
  • Syndicate

The Midterm Elections: No Panacea for the U.S. Economy

June 23, 2010

[Editor's Note: When it comes to explaining the nexus of business and politics, Money Morning's Martin Hutchinson is unmatched. Months before the actual events, Hutchinson correctly predicted the outcomes - and the investment impact - of the U.S. presidential primaries and the general election. And he recently did the same for Great Britain. Now he turns his attention to the U.S. Congress.]

By Martin Hutchinson, Global Investing Strategist, Money Morning

With many of the primaries past, and the November 2010 midterm elections less than five months away, it is worth taking a look at what policy changes we might expect from the next U.S. Congress. Both the political and economic worlds have changed one hell of a lot since the last elections, in 2008.

Thus, even though U.S. President Barack Obama is slated to remain in office until at least 2013, the Congress elected in November will be very different from the one that was elected in November 2008.

For a view of the future after the U.S. midterm elections, please read on…

  • About the Author
  • Syndicate