Next week will be real interseting - Election, FOMC meeting, lots of big earnings reports just for starters.
If Republicans get control of both houses of Congress, tort reform may limit trial lawyers and especailly asbestos claims. Since about 20% of the S&P 500 has an asbestos issue, the possiblity of reducing the potential liablity changes the value by 100s of Billions.
FOMC decisons have a lot of impact,as does earning reports.
We could also see some positive news out of Brazil, as Lula is much more reasonable some media reports. As John Dizard said in the FT, he represnts a real working class that wants jobs and economic stability, not a bunch of bomb throwing anarchist students. This would be positive for big banks and multinationals.
Also, it looks like the attack on Iraq will be postponned until early 2003. This will mean more time to build coalitons, and it will screw holiday retail spending. This may aslo mean a temporary drop in oil prices, which may pass through to pump prices in about 6 weeks.
ANy of these would be BIG positive news, and 2 or 3 of them could set off a new bull run, with lots of short covering. |
