Friday, September 26, 2008

Stock Market- Is the Stock Market Connected to the Presidential Election?

I strongly believe that the stock market and the American election are connected to each other. Even though the stock market has an effect on the global economy which always leads to – How people vote for the next president, it’s not the only issue that causes people to choose between both potential presidents. Home mortgages, unemployment and other issues also have a vital impact in this election.
Facts: The real gross domestic product (GDP) grew at an annualized rate of only 1.6% in the first quarter of this year. Workers are paying a heavy price for the capitalist downturn: over 2.4 million jobs have been lost since employment levels bumped up in March 2001.
“Unemployment rose half-a-million in the first quarter of this year, taking the official total to 8.8 million, a figure which substantially under-estimates the true numbers”. Faced with this, Bush appears to have only one economic policy, which is really no policy at all, an example, tax cuts for the super-rich.
The Mortgage Bankers Association, a national industry group, reported today that almost 5% of home mortgages were delinquent at the end of 2006, meaning the homeowner was at least 30 days behind in making payments. A record 0.54% of mortgages entered foreclosure during the fourth quarter.
Fortunately, jobs have continued to increase, albeit modestly, and unemployment has remained low. Inflation in the US has stayed remarkably steady, so that those high energy costs don't seem to have worked their way into prices of other goods and services. Growth is continuing in Europe and among our other major trading partners.
Going back to the stock market- Millions of households invest money in stocks, bond, and CD. As investors they are expecting their Portfolios to mature (Future pensions) and when a firm collapses the investor loses his Assets. (This can have a great impact in the upcoming election) For the most par people are going to expect both candidates to speak on this topic.
Predict the future: I’m not sure what is going to happened but, I do believe that Obama is an OK candidate: all I know is that we are going to be in debt…good luck with our taxes!