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Are Stocks Headed For a Romney Rally?

Low-trading volume and sluggish price movement have filled the markets this week – is there a pickup in sight?

Money Morning's Chief Investment Strategist Keith Fitz-Gerald appeared on Fox Business' "Varney & Co." this morning (Thursday) and discussed what could give the markets a needed boost.

We all know that central bank movement from the United States or Europe can move stocks, but now the focus is more on politics than economic policy.

Keith said that's why investors should pay attention to what happens when U.S. presidential candidate Mitt Romney takes the stage at the Republican National Convention. If Romney delivers a "breakout speech," the markets could enjoy a "Romney Rally."

Keith warns that if U.S. President Obama takes a commanding lead in the polls the same may not be true.

Prepare for what's ahead in the markets with Keith's full analysis in the accompanying video.

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  1. allen novotny | August 31, 2012

    Keith, why are you ignoring the fact that the stock market has done better under Obama than most presidents ever? The only thing I see is the rich are holding back investing to create jobs to try to control the election. They are putting their agenda ahead of the welfare of our country. Sad.

    • Teris Riel | October 5, 2012

      What's sad is that people believe that the investing in stock market has anything to do with creating jobs.

      Investing in the stock market (or gold or real estate for that matter) is parking your money while waiting for better opportunities.

      To create jobs: take real money (i.e. sell your stock), find a real CEO, create a real company, and hire real people. Rich people do this all of the time. That's why they are rich.

  2. H. Craig Bradley | September 6, 2012

    Nice class warfare claptrap Allen. Nice try. You sure don't let the facts get in the way do ya?? Try this:
    First, there are not nearly enough "rich" individual investors to move the market, even with seasonally low volumes seen during the summer months. However, institutional buyers/sellers do have the market clout to move individual stocks when they take a position, or conversely, exit one.

    Apparently, "the big boys" have been rather quiet in the last several months, as judging from the currently low CBOE Volatility Index ( VIX) reading of 16.17. Please don't tell me the market players are all rich (Republican) Tycoons on Wall Street trying to surpress the economy until their man is elected (It could easily be five more years until that happens).

    Old Joe Biden, the Democratic Brain Trust, is unlikely to run in 2016. I expect his retirement instead. It might be different if/when volume picks up and the VIX moves to 20 as we near the Nov. election. It remains to be seen if another QE will result in a noticeably higher stock market (NYSE) volume. So, don't be surprised.

  3. H. Craig Bradley | September 6, 2012

    Are you still accepting reader comments here Keith? OR, is someone asleep at the wheel? And sure, Stuart Varney has a new "lapdog" (you). Does he feed a biscut to his interviewees or guests after each session? Of course he does. Its called pay or compensation. Nobody goes on T.V. for free, nor is it unplanned or spontaneous either.

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