Tuesday, March 03, 2009

The Obama Market

BobKrumm.com » The Obama Market
We were warned:

Neither the Big Money crowd nor the Mr. Market crowd has fully priced in the prospect of a Democratic president and a heavily Democratic Congress. A total electoral blowout could result in (1) healthcare reform that is more heavily tilted toward government control than is currently suggested by the candidates’ proposals, (2) greater than anticipated tax increases, including a doubling of the capital-gains-tax rate and a surcharge on wealthier Americans—in addition to a rollback of the Bush tax cuts.
- James Pethokoukis, February 6, 2008

. . . a new land mine is lurking: “the Obama market.” Political ramifications represent a significant added market risk that should not be ignored,” he says. Initial polling suggests that Senator Obama will be the next president, a view Mr. Allmon shares. An Obama presidency is certain to mean a big tax increase, he says. He also points to the likelihood that the senator will seek to raise the marginal tax rate to 52% from 39.6% and hike the capital gains tax rate to at least 25% from 15%. “He’ll cause more damage to the stock market and even make Jimmy Carter look good,” Mr. Allmon says.
- Charles Allmon, June 30, 2008

Investors this summer have been placing their bets on an Obama presidency, and for the most part that hasn’t been good for the market. . . they are voting with their shares by tossing financial, health insurance, manufacturing and high-dividend stocks into the ash can, and are growing skeptical about energy companies as well. . . Obama’s rhetoric on taxes and health care is scaring common wealthy people with large capital gains from investments made over the past decade, and a lot of them don’t want to wait around to see whether it’s just populist fluff that might be set aside once he takes office.
- Jon Markman, July 14, 2008


Civis Ordinarius said...

I started jumping out last spring. Only wish that I had jumped completely out!

Ron Ballew said...

I was never able to put anything in...and am I glad now!